Africa-Press – Kenya. Global markets rebounded on Thursday after US President Donald Trump changed course in his tariff policy, with the Volatility Index (VIX), known as the “fear index,” dropping from its highest level in five years.
The sigh of relief was caused by US President Donald Trump’s decision to pause his “reciprocal tariffs” for 90 days on Wednesday.
Trump announced a 90-day reprieve to all nations except China from a Wednesday deadline in which they were expected to be hit with tariffs above his 10% baseline.
“I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” he wrote on Truth Social.
The president said he was raising the tariff rate on China to 125%.
Trump also said China is eager to make a trade deal but is uncertain about the pace after Washington raised tariffs on Chinese imports to 125%.
“We have a tremendous amount of spirit from other countries, including China. China wants to make a deal. They just don’t know how quick to go about it,” he said.
The VIX, a widely watched measure of market volatility, fell to around 36.3 as of 0800 GMT on Thursday after rising to the 50 level during Wednesday’s session, which is its highest since the COVID-19 pandemic.
In the US, the stock markets posted the biggest one-day gains seen in years after suffering for four consecutive sessions following Trump’s decision to pause tariffs on Wednesday.
Meanwhile, gold, a traditional safe-haven asset, also saw a rise. The price of gold rose to $3,110.12 per ounce, gaining 0.84% on the day.
For More News And Analysis About Kenya Follow Africa-Press
