Market watchers have labeled the new U.S.-China deal to temporarily cut tariffs “better than expected,” “more workable” and even a “dream scenario” — and are expecting more near-term relief for investors.

Under the deal, so-called reciprocal tariffs will drop from over 100% to 10% on both sides. The Trump administration will keep 20% fentanyl-related tariffs on China in place, meaning America’s total duties on Chinese imports will stand at 30% while the 90-day pause is effective.

Stocks in Europe and Asia rallied after the terms of the U.S.-China agreement were announced, with Europe’s Stoxx 600 index gaining 1%, Germany’s DAX hitting a 1-year high, and Hong Kong-listed shares jumping by around 3%.