Jet engine maker GE Aerospace boosted its outlook for the remainder of the year, expressing optimism that easing trade tensions between the US and China should prevent a steep drop-off for its business in the world’s second-largest economy.

The rosy outlook accompanied an announcement of a forecast-beating second quarter, aided by a big order from Qatar Airways and easing economic concerns, and a pledge for a 20 per cent increase in capital returns to shareholders over the medium term.

Although US reporting season is in its early stages, the sense of pessimism has receded among some businesses from three months ago as Trump has scaled back some of his tariff plans, while the passage of his flagship tax bill and easing tensions in the Middle East have also helped sentiment.