Global financial markets experienced a broad resurgence during trading on Wednesday, driven by a temporary easing in trade tensions between the United States and several of its trading partners, following President Trump's announcement of a 90-day suspension of tariffs. This decision had a direct impact on the performance of various assets, from currencies and commodities to stock and cryptocurrency markets.
US Dollar Stabilizes Supported by Employment Data and Inflation Watch The US dollar stabilized during trading, with the dollar index rising slightly by 0.03% to reach 102.93 points, amid investors' optimism about the possibility of calming the trade war. The greenback was also supported by the release of the Federal Reserve's minutes, which indicated ongoing concern from the central bank regarding rising inflation rates, which could later affect interest rate decisions.
Oil Prices Surge Amid Hopes for Global Demand Recovery Oil prices recorded a sharp increase in trading, benefiting from the relief following the suspension of tariffs, which alleviated fears related to an economic recession. West Texas Intermediate crude contracts rose to $62.76 per barrel, while Brent crude contracts increased by 2.44% to reach around $65.83, supported by market optimism about growing global energy demand.
Gold Continues to Rise, Approaching $3100 Barrier Despite the positive developments related to the suspension of tariffs, gold continued to record strong gains, supported by increasing concerns about rising tensions with China. Gold prices rose by 3.61% to reach $3090 per ounce, as investors flocked to safe-haven assets following Trump's announcement to increase tariffs on China to 125%, keeping geopolitical risks alive.
Bitcoin Sees Strong Jump with Risk Appetite Return Cryptocurrencies joined the wave of gains, with Bitcoin rising by 7.96% to record $82,315, amid a noticeable improvement in investors' risk appetite and a decline in fears of a global recession. This surge can also be attributed to liquidity flows toward high-yield assets.
Wall Street Records Remarkable Daily Performance US stock indices reflected the prevailing optimism, recording significant gains. The Dow Jones Industrial Average surged by 7.19% to reach 40,352.16 points, while the S&P 500 rose by 8.89% to 5,425.58 points. The Nasdaq achieved strong gains of 11.66%, recording 17,048.56 points, as investors leaned heavily towards technology and investment stocks.
