Stock markets upswing: hope for easing of trade dispute
Stock markets upswing: hope for easing of trade dispute

23 April 2025 – Global stock markets are on the rise again. The decisive factor is conciliatory tones from Washington: US President Donald Trump signals a possible easing of tensions in the trade dispute with China and makes it clear that he does not want to fire Fed Chairman Jerome Powell. This surprising turnaround brought relief to the financial markets worldwide.

Global stock markets on the upswing: hope for easing of trade dispute boosts markets

The international financial markets are breathing a sigh of relief. After weeks of uncertainty, new signals from Washington are fuelling optimism: US President Donald Trump and Treasury Secretary Scott Bessent are hinting at a possible easing of tensions in the trade conflict with China. At the same time, Trump is backing down in his dispute with Fed Chairman Jerome Powell. The reactions on the stock markets are clear – especially in Asia, Europe and the USA.

Asia: Positive impulses

The stock markets in Asia rose significantly on Wednesday. The Nikkei 225 in Japan rose by 2 %, the Hang Seng Index in Hong Kong by 1.9 % and the South Korean KOSPI gained 1.4 %. This was triggered by a speech by President Trump in which he announced his intention to significantly reduce the currently high US tariffs against China in the long term.

United States: Wall Street shows signs of recovery

Investors in the USA were also relieved. Futures on the S&P 500 rose by 1.4 % in Asian trading. Trump’s statements on de-escalating the trade dispute were received positively – as was his gesture of détente towards Federal Reserve Chairman Jerome Powell.

The prospect that the economic impact of high tariffs could be less severe led investors to act more boldly again. Technology stocks in particular rose after coming under heavy pressure in recent weeks.

Europe: Stock markets celebrate Trump’s conciliatory tones

The European stock markets followed the positive trend. The DAX rose by 2.5 %, the French CAC 40 gained 1.5 % and the British FTSE 100 climbed by 1.3 %. The prospect of an easing of the trade dispute pushed concerns about a global recession into the background.

Trump’s statement that the current tariffs of up to 145% against China are too high and must be lowered was also welcomed in Europe. This is fuelling hopes of a more stable global trading environment – especially for export-oriented economies such as Germany.

Trump, Powell and the Fed: signs of reassurance

In addition to the trade dispute, Trump’s position towards Fed Chairman Jerome Powell also brought relief to the markets. After publicly criticising Powell on several occasions, the President has now emphasised that he has no intention of dismissing the head of the central bank. Rather, his statements were ‘calculated pressure’ to achieve interest rate cuts.

This clarification was seen by investors as a positive sign that the independence of the US Federal Reserve is not jeopardised. This reduces the risk of politically motivated destabilisation of the Fed – an aspect that has repeatedly caused unrest in recent weeks.

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