Global stocks regained some ground on Tuesday after three days of turmoil unleashed by Donald Trump’s tariffs.
Futures contracts tracking European and US indices pointed to moderate rebounds ahead of the day’s trading sessions, after Asian stocks delivered a partial recovery.
Contracts tracking the Stoxx Europe 600 index were up 2.5 per cent, while those for the UK’s FTSE 100 were up 1.9 per cent.
S&P 500 and Nasdaq Composite index futures were up 1.2 per cent and 1 per cent, respectively. The indices closed near flat on Monday after steep falls last week following Trump’s “liberation day” announcement of sweeping new tariffs.
In Asian markets, Japan’s Topix climbed 6 per cent after Tokyo and Washington agreed to hold trade talks. Mainland China’s CSI 300 index rose 0.7 per cent and India’s Nifty 50 index gained 1.3 per cent. Hong Kong’s Hang Seng index edged down 0.2 per cent after notching early gains.
In currency markets, the US dollar weakened 0.5 per cent against a basket of trading partners. Sterling rose 0.5 per cent to $1.28, while the euro strengthened 0.6 per cent to $1.10. Haven currencies, including the Swiss franc and yen, also strengthened against the dollar.
Wei Li, head of multi-asset investments for China at BNP Paribas, said Asian markets had staged a reversal of Monday’s session, “with a positive risk tone”. But he warned that behind the signs of recovery, “the underlying tensions and uncertainties remain”.
Ben Wiltshire, G10 rates strategist at Citi, said investors should watch the US Treasury market closely on Tuesday for any signs of a retreat.
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