The expense of safeguarding against defaults on European and Asian debt dropped on Thursday as investors found relief in the halting of some severe U.S. tariffs. The recent decision by U.S. President Donald Trump to pause import tariffs on multiple countries for 90 days, except for China, surprised markets and resulted in a positive response across global markets. The iTRAXX Crossover index in Europe, which monitors insurance costs against default for low-rated companies, decreased, as did an index for highly-rated entities. Even though both indexes stayed near Wednesday's highs, there was a slight improvement as investor sentiment improved. Financial experts like Charu Chanana from Saxo advised caution in managing fixed-income exposure amidst market volatility. Sovereign credit default swap spreads for the U.S. and China showed signs of investor uncertainty regarding the ongoing trade war between the two largest economies, while Japan's spreads decreased. The credit default swap spread on the Markit Itraxx Asia ex-Japan index also witnessed a decline, although concerns about a global recession due to U.S. tariffs persisted. The alterations following the tariff-related fears show that investor confidence is gradually stabilizing.