World shares make modest gains as euphoria over China-US trade truce wavers

(RNS, 14-05-25) Shares logged modest gains in most world markets on Tuesday as the initial euphoria over the 90-day truce in the trade war between the United States and China faded.

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Investors were sobered after Monday's rallies by longer term worries, as analysts warned President Donald Trump's policies could still change.

The future for the S&P 500 slipped 0.4% while that for the Dow Jones Industrial Average fell 0.2%. On Monday, stocks soared on Wall Street after the United States said in a joint statement with China that it will cut tariffs on Chinese goods to 30% from as high as 145%, for 90 days.

China, meanwhile, said its tariffs on U.S. goods will fall to 10% from 125%. The agreement allows time for more talks following the weekend's negotiations in Geneva, Switzerland, which the U.S. side said yielded "substantial progress."

The outcome surpassed most expectations, reassuring investors, said Stephen Innes of SPI Asset Management.

"Make no mistake, this was highly stage-managed diplomacy. But the optics are good and the implications real. It signals that even this administration recognizes the economic drag of unrelenting tariffs," he said in a commentary.

Still, big challenges remain in the negotiations between Beijing and Washington and many countries have yet to negotiate tariff-alleviating deals of their own.