Shares in Europe and Asia witnessed a slight recovery on Tuesday following a period of persistent sell-offs that significantly impacted equity markets after President Trump’s declaration of global trade tariffs. U.S. stock markets are also anticipated to experience a small rise at the commencement of the trading day, as suggested by futures trading data which often indicates the market’s opening trend. This comes after a turbulent Monday on Wall Street characterized by a third consecutive day of volatile stock swings.
Despite major declines and significant fluctuations in equity trading last week through Monday — in markets from Shanghai and New York, to Frankfurt and Tokyo — any potential increase in stock prices on Tuesday is expected to recover only a portion of the investor wealth that has been lost over the recent days.
Major stock markets in Hong Kong and Shanghai, specifically the Hang Seng Index and Shanghai Composite, ended slightly higher on Tuesday. Meanwhile, Tokyo’s Nikkei index rose more than 6%, marking a recovery from the lowest point reached in an 18-month period on Monday, during which it lost nearly a fifth of its value over the past two weeks.
European markets began Tuesday’s trading on a positive note. However, investors in prominent European stock markets have faced notable losses over the past week, even before the full impact of substantial tariffs on European exports to the United States is realized.
In the face of market uncertainties, the price of gold has continued to surge above $3,000 per ounce. This situation has led financial analysts to draw comparisons with the late 1970s and 1980s when similar geopolitical and economic uncertainties caused significant increases in gold prices. Additionally, with ongoing uncertainties surrounding the United States’ global role, analysts predict the dollar might further depreciate against other major currencies.
In China, numerous large government-supported companies have announced plans to repurchase their own shares as part of a broader strategy to stabilize local equity markets. Chinese officials stated on Tuesday that they are unwilling to yield to President Trump’s threats of imposing an additional 50% tariff on Chinese exports to the U.S., declaring that “China will fight till the end if the U.S. side is bent on going down the wrong path.”
