ISTANBUL

Global markets reflected hope of averting a trade war after US President Donald Trump and Italian Prime Minister Giorgia Meloni sounded bullish Thursday on the prospects for the US and EU striking a “fair” deal.

In Washington, Meloni spearheaded EU efforts on a trade deal with the US, made urgent by Trump's decision to impose tariffs of at least 10% on nations around the world. The EU was hit with a levy of 20%, but like dozens of other nations, the bloc was granted a 90-day reprieve to allow for negotiations.

Hosting Meloni at the White House for a working lunch, Trump said he was in "no rush" to strike the bargain, but added: "Of course, there'll be a trade deal. Very much. They want to make one, very much … a fair deal.”

Meloni echoed the sentiment, saying: "I'm sure we can make a deal, and I'm here to help with that."

Japan also sent a high-level delegation to the White House on Wednesday for negotiations with Trump, who was similarly upbeat after they concluded.

The US president also said China also reached out for talks following his decision to impose new tariffs on Beijing. Trump said Beijing had made contact “a number of times” since the US announced a 145% tariff on certain Chinese goods.

Following these developments, the VIX, the "fear index," a widely watched measure of market volatility, fell by 9.16% to 29.65, its lowest since April 3, down from record high levels of 50 after the US announced the tariffs.

Yet US stock markets closed Thursday mixed as investors reacted to a threat by Trump to fire Federal Reserve Chair Jerome Powell.

On social media, Trump called Powell "always too late" to cut rates and added: "Powell’s termination cannot come fast enough!"

Meanwhile, gold, a traditional safe-haven asset, stood stable at $3,327.11 on Thursday after hitting a record high of $3,358 this week.