Tuesday saw advances in U.S. futures and global stocks, with the Nikkei 225 in Tokyo rising just over 6% as markets largely settled down following the shocks of President Donald Trump’s tariff rises.
Most markets saw a slight recovery after a tumultuous day on Wall Street, when equities plummeted as Trump threatened to raise his double-digit tariffs.
After Trump threatened to impose another 50% tariff on Chinese imports, China’s Commerce Ministry declared early Tuesday that it will “fight to the end” and take unnamed actions against the US.
The Paris CAC 40 was up 1.3% at 7,018.79, while Germany’s DAX increased 0.9% to 19,975.81. The FTSE 100 in Britain increased 1.3% as well, to 7,804.73.
Early on Tuesday, the Dow Jones Industrial Average saw a 1.9% increase in futures, while the S&P 500 saw a 1.5% gain.
At 33,012.58, the Nikkei 225 closed slightly above 6% higher in Tokyo.
Although Hong Kong regained some of its lost territory, Monday’s 13.2% decline gave the Hang Seng its worst day since the Asian financial crisis in 1997.
To 20,036.03, the Hang Seng had a 1% increase. After the government investment fund Central Huijin ordered state-owned enterprises to buy shares to strengthen the market, the Shanghai Composite index surged 1.4% to 3,140.15.
Australia’s S&P/ASX 200 increased 2.3% to 7,510.00, while South Korea’s Kospi increased 0.3% to 2,334.23.
However, when Thai and Indonesian markets reopened following holidays, they fell. When the JSX index dropped more than 9%, trading in Jakarta was momentarily halted. By mid-afternoon, it had dropped 7.6%. Thailand’s SET saw a 4.2% decline.
The largest computer chip manufacturer in the world, Taiwan Semiconductor Manufacturing Corp., or TSMC, suffered losses that caused the Taiex to drop 4% in Taiwan. Tuesday saw a 3.8% decline in its shares.
As shell-shocked investors waited to see what Trump would do next in his trade war, the S&P 500 fell 0.2% on Monday. He might reduce his tariffs and prevent a potential recession if other nations agree to trade agreements. However, stock values can drop even more if he maintains tariffs over time.
The Nasdaq composite increased by 0.1% as the Dow fell 0.9%.
The day began with a steep decline in all three indexes. However, the Dow and S&P 500 surged higher in the late morning on a fabricated report that Trump was contemplating a 90-day halt to his tariffs. A White House account on X swiftly called the report that sparked speculation that Trump may relax tariffs “fake news,” sending trillions of dollars’ worth of investments to shift.
Trump then went into additional detail, stating that he would increase taxes against China after the second-largest economy in the world struck last week with a set of duties of its own against American goods.
The globalization that has defined the modern world economy and contributed to price reductions is being attacked by Trump’s trade war, which has also resulted in the loss of manufacturing employment to other nations.
Although it might take years, he has stated that he intends to restore factory jobs to the United States. Trump also claims to desire to reduce trade deficits with other nations, although it is unclear how much wiggle room the United States or its trading partners have.
Due in part to investors’ continued optimism that discussions could prevent the imposition of the high taxes on all imports, indexes fluctuated between gains and losses on Monday.
On Monday, the only thing that appeared to be definite was the financial turmoil that was crushing global assets.
The price of a barrel of benchmark U.S. crude oil fell below $60 on Monday for the first time since 2021, hurt by concerns that a global economy hobbled by trade barriers will burn less fuel. At $61.37 per barrel, it was up 67 cents early on Tuesday.
The global benchmark, Brent crude, increased 65 cents to $64.86 a barrel.
The U.S. dollar dropped from 147.85 Japanese yen to 147.32 yen in currency trading. The euro dropped from $1.0905 to $1.0982.
Gold’s price increased by $54 to around $3,028.00 per ounce.
Bitcoin increased by 6.2% to roughly $79,400. After hitting a record high of $100,000 in January, it fell below $79,000 on Monday.
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