Washington hints at 'de-escalation' in tariff tensions

A relief rally swept global equity markets on Wednesday morning amid clear signs from the United States administration that there could soon be a "de-escalation" in the trade tensions between the US and China.

US Treasury Secretary Scott Bessent told investors at a closed-door meeting in Washington, DC, on Tuesday that there will be a "de-escalation" in the tariff tensions with China in the "very near future", CNBC reported.

"No one thinks the current status quo is sustainable," Bessent said, adding that the prospect of de-escalation between the world's two largest economies "should give the world, the markets a sigh of relief".