The USA and China freeze the trade war for 90 days.

In Geneva, it was agreed:

— US tariffs on Chinese goods reduced from 145% to 30%

— China reciprocally reduces from 125% to 10%

In fact, they returned to tariffs before April 2 — before the escalation spiral. For the next 90 days — a pause and continuation of negotiations.

What is behind this?

Most likely — a non-public deal. The USA could have demanded to purchase more American goods or strengthen the yuan against the dollar. In any case, 90 days is a test of contractual capability.

How the markets are reacting:

— Hong Kong: Lenovo +9.6%, Impo Precision +12.7%

— US premarket: ZIM +13.5%, Tesla +7.8%, Amazon +7.6%, Alibaba +7%

— The dollar strengthened, oil became more expensive