Stock markets rallied sharply after Donald Trump expressed optimism that a trade deal between the U.S. and China “will happen”, even as tensions over tariffs between the world’s two largest economies remain high.
In Europe, the FTSE 100 and other major indexes jumped more than 3%, buoyed by the U.S. President’s comments that he is waiting for a call from China, whose leaders, he claimed, “badly” want to reach an agreement.
Wall Street followed suit, with stocks soaring on renewed hopes that last week’s disruption caused by Trump’s “liberation day” tariffs might soon be resolved.
Posting on his Truth Social platform, Trump wrote:
“China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call. It will happen!”
He also pointed to a potential breakthrough with South Korea, citing a recent phone call with the country’s acting president and the “probability of a great deal” on tariffs.
U.S. Treasury Secretary Scott Bessent added to market optimism, saying that “some very large countries with large trade deficits” were likely to engage in talks soon.
“We were having a discussion last night about which countries to prioritise,” Bessent told CNBC, “and I think you’re going to see some very large countries come forward very quickly. If they come to the table with solid proposals, I think we can end up with some good deals.”
Bessent, a former hedge fund executive, said he had reviewed a “substantial” call list at the White House, suggesting active preparations for high-level trade discussions.
In the UK, Chancellor Rachel Reeves told Parliament that she would meet with Bessent “shortly”, as Britain continues to pursue a closer trading relationship with the United States.
Reeves also held talks earlier with the Governor of the Bank of England, who assured her that despite recent market turbulence, “markets are functioning effectively and our banking system remains resilient.”
