Stocks rallied Monday after China and the United States announced a 90-day truce in their trade war. Each of the world’s two largest economies agreed to take down temporarily most of its tariffs against the other,

Both countries have agreed to reduce reciprocal tariffs by 115% for an initial 90-day period as talks continue.

The US will cut the additional tariffs imposed on Chinese goods during US President Donald Trump’s second term to 30 per cent from 145 per cent while Chinese retaliatory duties on US imports imposed since April 2 will fall to 10 per cent from 125 per cent, the two countries announced on Monday.