Shares in banking behemoths HSBC and Standard Chartered have experienced a surge on Monday morning as trade tensions between the US and China seemed to diminish.
HSBC's shares leapt nearly four per cent, marking an increase of over 14 per cent for the month, as reported by .
Standard Chartered's shares rocketed by more than seven per cent, with its monthly gains exceeding 17 per cent.
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The banks had previously seen their stocks tumble following President Donald Trump's 'Liberation Day' tariffs, but a more tranquil atmosphere has aided in the recovery of their shares.
Trade discussions in Switzerland between the US and China were labelled "productive and constructive" by Treasury Secretary Scott Bessent.
China's Vice Premier He Lifeng characterised the talks as "in-depth" and "candid."
These negotiations came after Trump imposed a 145 per cent tariff on Chinese imports, to which Beijing responded with a 125 per cent levy on select US products.
Post-talks, the White House reduced its tariff on Chinese goods to 30 per cent, while China decreased its tariffs to ten per cent. This has sparked optimism that trade tensions may relax, although tariffs will remain significantly higher than before Trump's aggressive tariff measures.
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Russ Mould, investment director at AJ Bell, commented on the market's reaction: "Markets have welcomed the tentative US-China trade agreement with open arms."
"While the trade spat has only been dialled back for 90 days, it's a major breakthrough as far as investors are concerned. The fact the two countries were talking was already a major win given they've been at each other's throats during the first and second Trump presidential terms."
HSBC and Standard Chartered make tariff recovery
In a recovery from trade tariff woes, shares of HSBC and Standard Chartered saw an uptick.
Standard Chartered's stock had been lagging compared to its fellow FTSE 100 counterparts in bouncing back from the tariff impacts.
With significant operations in Asia, both banks felt the sting of heavy tariffs imposed by President Donald Trump.
HSBC, headquartered in London, stands as a major international bank within Asia, having established its business foundations in Hong Kong and Shanghai.
On the other hand, Standard Chartered zeroes in on emerging markets, catering to the expanding middle class in regions such as India, China, and Indonesia, providing retail services including savings and current accounts.
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The lender suffered a five-day tumble of 20 per cent amid escalating trade tensions between China and the US, while HSBC experienced a decline topping 15 per cent.
Nevertheless, a surge on Monday's trading session nudged both banking giants closer to their trading levels prior to the tariff announcements, with HSBC ascending to 882p, just shy of 883, and Standard Chartered climbing to 1,143p from 1,152.