Global stock markets have shown some gains, and cryptocurrencies have recovered slightly, with indications that the escalation of the US-China trade tensions may not be as serious as initially anticipated. Tensions increased recently when former President Donald Trump threatened to implement additional tariffs of 100% on goods imported from China, citing what he described as “very hostile” Chinese actions to limit exports of rare-earth minerals essential for American industries. In response, Beijing has indicated that it would retaliate if Trump does not reconsider his position.
On a more optimistic note, Trump and senior US officials appeared to open avenues for negotiation with China, suggesting that the situation could stabilize. Trump stated on social media that he believed things with China would ultimately improve, expressing a desire to help rather than harm China.
Following these developments, major US stock indices, including the S&P 500 and Nasdaq Composite, experienced increases of 1.1% and 1.7%, respectively. The UK’s FTSE 100 index initially rose but saw a slight decline later in the day. European markets exhibited mixed reactions, with limited movements observed across various indices.
In the cryptocurrency sector, there was a rebound after a substantial drop over the weekend. Bitcoin saw a marginal increase to over $115,000, while Ether climbed back to approximately $4,100. Despite the temporary market stabilization, investor uncertainty has driven increased interest in gold, a traditional safe-haven asset, which reached a new high of $4,078.5 per ounce.
In Asia, market conditions were less stable, with significant declines in Hong Kong’s Hang Seng index and other regional markets. Meanwhile, the Chinese government reported that exports rose by 8.3% year-on-year in September, surpassing economists’ forecasts. This marks the fastest growth observed since March, despite the ongoing trade disputes.
Source: https://www.theguardian.com/business/2025/oct/13/markets-rebound-us-china-tariff-taco-trade