Truce in U.S.-China trade dispute should boost financial markets

Image Source: MGN
By  | 

WASHINGTON (AP) - The truce in the trade dispute between the U.S. and China should boost financial markets, at least likely through year's end, experts say.

But the stock market's wild gyrations of recent months likely will persist as the two countries strain to reach a permanent accord.

The U.S. was set to raise tariffs on $200 billion in Chinese goods Jan. 1. President Donald Trump agreed Saturday in a meeting with Chinese Leader Xi Jinping at the G-20 summit to hold off for 90 days while the two sides try to settle their differences.

That looming deadline, as well as Trump's threat to impose tariffs on an additional $267 billion of goods from China, possibly including iPhones and laptops, had contributed to sharp declines in stocks since early October.