Global Markets Navigate Trade Truce, Credit Downgrade

This week’s global financial markets were marked by a complex interplay of contrasting forces. A significant easing of U.S.-China trade tensions provided a temporary boost, as both nations agreed to slash tariffs for 90 days. This move was seen as positive for global trade stability. However, Moody’s downgraded the U.S. sovereign credit rating from AAA to AA1, citing rising debt and widening budget deficits. The downgrade highlighted underlying fiscal challenges that cast uncertainty over long-term economic health.