Stock markets, the dollar and oil prices rallied Monday after Chinese and US officials slashed tit-for-tat tariffs for 90 days, fuelling hopes the two sides will pull back from a standoff that has rattled global markets.

Hong Kong's stock market closed up 3.0 percent in reaction, while Paris led the way in Europe, gaining 1.4 percent in midday deals.

The big gainer in the French capital was luxury giant LVMH, the maker of Louis Vuitton handbags, whose shares were up nearly seven percent.

The dollar rallied against the euro, yen and British pound, while oil prices jumped around three percent.

"The market was not expecting the big change to US and China tariff rates, which is very positive for the outlook for the US and the global economy," said Kathleen Brooks,........

© International Business Times