US asset managers rise as US, China cut tariffs

Shares of U.S. asset managers rise premarket, as investors welcome the temporary slashing of tariffs by the world's two biggest economies, signaling de-escalation of a trade war that has stoked fears of recession and roiled financial markets

Blackstone BX.N up 7.1%, KKR KKR.N rises 6.8% and Apollo APO.N climbs 5.7%

BlackRock BLK.N up 4.9%, Charles Schwab SCHW.N rises 3% and Franklin Resources BEN.N climbs 1.5%

Asset managers especially susceptible to market downturns as their fees are directly tied to the value of the portfolios under their management

Dour investor sentiments and recession fears can also complicate fundraising efforts for alternative asset managers, who pitch higher returns to investors for higher risk

The U.S. will cut extra tariffs it imposed on Chinese imports in April this year to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125%

The new measures are effective for 90 days