US credit card firms rise as US-China trade war de-escalates

Shares of U.S. credit card firms 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

Shares of American Express AXP.N rise 3.9%, Visa V.N and Mastercard MA.N up 2.1% each

Escalating U.S.-China trade tensions had dampened consumer sentiment and reignited stagflation fears, casting a shadow on the outlook for consumer spending as well

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