Following Chinese president Xi Jinping’s promises at the Boao forum to cut tariffs and improve intellectual property protection, markets across the world are responding with a sigh of relief.
After Xi’s address, the Dow Jones was trading at around 2% throughout the day, and the UK’s FTSE 100 closed up 1% at 7,266.8. These numbers come after fears of an escalating trade war between the U.S. and China were quelled with Xi’s statement.
Xi’s commitment comes after an economic sparring match between the U.S. on China in which hundreds of goods from both countries were tariffed by the other.
According to Sky News, Asian shares closed higher, while U.S. futures and the dollar rose after Xi’s remarks. Additionally, German automobile stocks saw significant improvements.
According to Evercore ISI, German carmakers will benefit the most from lower auto tariffs, along with the entire German economy.