The new U.S. envoy to China, Ambassador David Perdue is a former champion of global trade turned China hawk who will emphasize his close ties to President Donald Trump as he seeks to restore crucial lines of communication between Washington and Beijing.

The de-escalation gives both sides breathing space to find a way to preserve a trading relationship that was threatening to grind to a halt.

Today’s 4% surge across the board represents what you might call the “final bake”. The full market value of the tariff deal now officially priced into stocks. Not surprisingly, stocks rallied back to levels slightly above where we stood when tariff volatility began in early April.

There’s more to Monday’s soaring stocks than the pause in crushing China tariffs.

Former Fed president Bill Dudley warned that the central bank risks mistiming interest rate cuts if the economy stumbles into a recession.

China hailed a trade agreement with the U.S. that will see both sides sharply reduce their tariffs for 90 days, calling it an "important step" that could lead to "deepening cooperation" between the world's two largest economies.

Bullying’ leads to isolation, Chinese leader Xi Jinping warned, after the Trump administration rolled back many tariffs.

The U.S. agreed to cut tariffs on Chinese goods from 145% to 30%, while China committed to reduce tariffs on U.S. products from 125% to 10%. The lowered tariffs will remain in place for 90 days while the two sides negotiate a wider trade deal.

Progress on US-China trade over the weekend sent stocks soaring on Monday. Some top commentators say tariffs are still a big risk.

Since last weekend's pause on tariffs with China was announced, stocks have been steadily regaining ground lost in April.