10:48 BST
Nick Edser
Business reporter
Image source, EPAStock markets have welcomed news of the agreement between the US and China as investors hope that a global trade war can be averted.
Hong Kong’s benchmark Hang Seng Index was still trading when the announcement was made, and jumped on the news, ending the day up 3%.
European stock markets are also higher and early indications are that the main US stock markets will open up by more than 2%.
Russ Mould, investment director at AJ Bell, says the agreement is “a major breakthrough” as far as investors are concerned and has been welcomed “with open arms”.
“Some people thought the best-case outcome from the weekend’s discussions would be an agreement to simply keep talks going,” he tells me.
“Therefore, to have reached an initial deal so quickly and one that rolls back tariffs by a large amount is a pleasant surprise.”
Oil prices jumped on hopes that global growth will be boosted by the tariff agreement, and the price of benchmark Brent crude rose more than 3% to $64.14 a barrel.
However, the price of gold fell 3% to $3,224.34 an ounce.
The disruption caused by President Trump’s tariffs has helped the gold price to rise in recent weeks as it is seen as a safer asset in times of uncertainty.