The Wall Street Journal: Trump-Xi trade cease-fire may ignite short-term relief rally

Stocks and other risky assets are likely to enjoy a brief rally after the emergence of what appears to be a U.S.-China trade truce, analysts said. However, the longer-term outlook depends on what kind of lasting deal can be struck by the two largest economies, and how this could affect interest rates.

President Trump and Chinese President Xi Jinping reached a cease-fire in their trade battle, after meeting on Saturday in Japan.

The two sides said bilateral talks would resume and the U.S. would indefinitely shelve plans to levy duties on the roughly $300 billion of Chinese imports that aren’t currently covered by 25% tariffs.

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