Markets are waiting for tariff help, new highs in 2025

Analysts and strategists said on Monday that the new US-Kita’s new agreement could re-take the risk moods, benefiting US stocks and assets.

In a note client on Monday, Tai Hui, the chief market strategist in the Asia -Tzak -Tzakhakan region in JPMorgan Asset Management, said the transaction presented in Geneva was better than expected but uncertainty remained.

“The value of this decline in tariffs is more than expected,” he said, although he noted that Beijing and Washington would be difficult to reach a more specific trading agreement in just three months.

“The 90-day period may be insufficient to reach a detailed agreement, but it retains pressure on the negotiating process,” Herk said. “We are still waiting for additional details on other terms of this agreement, for example, whether China will relax on rare export restrictions.”

However, Hui acknowledged the positive market reaction to the news.

“Overall, we expect the market to return to the risk soon,” he said. “Pressure on (federal reserve) before speeding can also ease the time.”

Jordan RochesеR, head of EMEA currency strategy and Mizuho Bank Executive Director in London, wound “much better news than expected.” He claimed that events would mean ” The story of “sell America” (gets) compressed. “

American assets including dollar. Treasury and stockssaw the major volatility A few weeks since Trump has submitted a full degree of tariff plans.

Monday morning, US dollar indexMeasuring the cost of the green lapel against the basket of major currencies, increased by 1%. Yield on landmarks 10-year-old Treasury US increased by 6 basic points when the price decreased below.

According to Rochester, the 90-day transaction takes an effective tariff rate in the US that Chinese companies will actually pay with 108.8% to 27%, which he noted is much higher than the market consensus about 50% to 60%.

“Also notable as (officials) have reduced the requirements for the negotiations to continue over the last 90 days on a press conference with” as long as the negotiations are constructive, “he said. Lines. “

According to Wall Street strategists, better than expected, the results of trade negotiations mean further actions.

“Although the shares have bounced, there is a great variance (between the) and exporters under the hood, the dollar at risk remains high and the overall location is easy/defensive,” Emanuel Kau, head of the European stock strategy in Barclays said in an email. “Trading pain up means that stocks have the opportunity to overcome.”

Meanwhile, Deutsche Bank strategists said their moods were significantly increased in the morning news. They now expect US shares to exceed its European competitors in the short term.

“Today’s announcement is even exceeding our constructive expectations,” they said. “In our opinion, this ad is not only better than we expected, but also better than the market is still waiting in March.

“Although it is difficult to say how it will develop after a 90-day period, the consequences for the markets clearly support … Be bullish and think that they retreat to the Chinese tariff sectors (EX Autos, Health and Chips).”

Mikel Emil Jensen, Senior Sydbank Analyst, said the 90-day pause noted the main de-escalation in the US-Kita Trade War.

“(This) removes most of the uncertainty related to the world trade – at least until,” said Mikel Emil Jensen, a senior Sydbank analyst, CNBC said after the news announcement.

“The transaction may be temporary, but the transaction is better than expected, and can ignite the positive impact of the pulsation on global trade and increase the demand for frets in containers,” said Sydbank analyst. Giant Giant stock Mayers On Monday morning were over 12% higher.

“Moreover, the temporary transaction can increase the effect that loads the front load, causing the company to increase the reserves before the potential deterioration of the trade war,” Jensen added.

Also, responding to the news, Dan Iusbush said he believed that the US-Kita transaction was “clearly only the beginning of broader and comprehensive negotiations”, describing the news as “a huge victory for the market and bulls”.

“We might expect both of these tariff numbers to be markedly down in the coming months when the progress of negotiations,” he said in the note. “The basic appearance, which was heading over the weekend, was a de -escalation of tariffs on the United States/China, and an agreement on additional negotiations … Instead, in the dream scenario this morning (officials) came out of these conversations with massive cuts of mutual tariffs.”

Jus, who is known for his bullish views on technology, claimed that the agreement meant new highs for markets and technology shares that were “now on the table in 2025”.

Alike Reduced freight ships and shipping containers From the announcement of tariffs in early April.

Lindsay James, an investment strategist in Quilter, said the new transaction was “not as good as a 20%level that existed before the so -called release day” but added that the temporary agreement would allow a “significant share of trade, albeit higher prices.”

. Sam Mredite CNBC contributed to this report.