Global stock markets surge as U.S. and China reach 90-day trade truce – National [Video]

Stocks are surging on Wall Street after China and the United States announced a 90-day truce in their trade war.

They agreed to take down most of their tariffs that economists warned could start a recession and create shortages on U.S. store shelves.

The S&P 500 was 2.7 per cent higher in early trading Monday. The Dow Jones Industrial Average jumped 981 points, or 2.4 per cent, and the Nasdaq composite was 3.7 per cent higher.

Crude oil prices jumped because a global economy less weakened by tariffs would be hungrier for fuel. The value of the dollar climbed against other currencies and Treasury yields rose.

The Toronto Stock Exchange also started the Monday trading day on positive ground gaining almost one per cent at the open, while the loonie dipped about a quarter of a cent compared to the stronger U.S. dollar.

A joint statement on Monday said that for a 90-day period, the U.S. will cut …