By Ali Canberk Ozbugutu and Emir Yildirim
ISTANBUL (AA) - Global markets were on a positive trend Tuesday led by the optimism that US President Donald Trump may give “a lot of countries breaks” from reciprocal tariffs, helping reduce the risk perception worldwide.
But analysts say that Washington’s possible sudden moderate stance on tariffs is overshadowed by the potential problems the US will face from its major trade allies continuing to fuel uncertainties in the markets.
Some tensions were eased following negotiations for peace in Ukraine. Trump said Moscow and Kyiv will come together for a ceasefire and third-party countries will be involved to monitor the ceasefire.
Meanwhile, Fed official Adriana Kugler said she is in favor of keeping rates unchanged for some time due to upward movement in inflation estimates.
The New York Fed’s consumer confidence index fell 7.2 points to 92.9 in March, the lowest since the beginning of 2021.
The US 10-Year Treasury bond is at 4.34% and the US Dollar Index started the day at 104.3%, up 0.1%, on Wednesday.
Gold has been hovering near all-time highs due to rising geopolitical tensions and central bank purchases. The ounce price of gold climbed 0.3% to $3,020 on Tuesday and was trading at $3,015 with a 0.2% decline on Wednesday.
Brent crude oil is trading at $72.5 per barrel with a 0.1% loss on Wednesday.
The S&P 500 rose 0.16%, the Nasdaq was up 0.46%, and the Dow Jones remained on a flat course on Tuesday, while US index futures started Wednesday on a mixed course.
-Europe, Asia, Türkiye
In Europe, expectations that Trump’s tariffs may not be as harsh as expected and the ceasefire negotiations between Ukraine and Russia made their marks on European stock markets.
Maros Sefcovic, European commissioner for trade and economic security, said he had multiple meetings with US Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer, and White House senior economic advisor Kevin Hassett, though he did not share the details of these meetings.
The S&P Global Ratings cut its growth forecast for the eurozone to 0.9% for 2025 due to tariff-induced uncertainties but a significant recovery is expected in 2026, led by Germany and the EU’s stimulus measures.
The DAX 40 rose 1.13%, the CAC 40 1.08%, the FTSE MIB 30 1.06%, and the FTSE 100 0.3% on Tuesday, while European index futures started Wednesday on a positive trend.
As for Asia, a buyer’s course came to the fore while Bank of Japan (BoJ) Governor Kazuo Ueda said the bank could raise rates if persistent increases in food costs lead to widespread inflation in the Japanese economy.
Ueda said the recent high inflation is due to rising import costs and food prices and that these will disappear over time and they are not enough to tighten the bank’s monetary policy.
Huang Yiping, advisor to the People’s Bank of China, said on Wednesday that Beijing has ample policy space for macro policy to support growth, noting that structural challenges can be overcome in the future.
Official data showed that Japan’s leading economic indicators index was 108.3 in January, upwardly revised from 108.
The Nikkei 225 rose 1.1%, the Kospi Index 1.2%, the Hang Seng Index 0.3%, and the Shanghai Composite Index 0.1%.
In Türkiye, the BIST 100 climbed nearly 4.5% on a buying-weighted course, while the US dollar/Turkish lira exchange rate followed a flat course at 37.9750 on Tuesday, opening Wednesday slightly higher by 0.1% at 37.9970.
Turkish Treasury and Finance Minister Mehmet Simsek and Central Bank Governor Fatih Karahan held an online conference with international investors on current developments in the country.
Simsek said all steps are being taken as soon as possible to ensure the healthy operations and efficiency of the markets. He added that that the effects of recent economic developments on the economy are temporary and limited.