Global markets mixed amid US-China trade uncertainties

ISTANBUL

Global markets remained mixed following US President Donald Trump’s tariff threats against China in response to its rare earth export restrictions, while he insisted “it will all be fine” in a recent social media post.

Trump said China would face a 100% tariff on top of existing tariffs beginning Nov. 1, but later said, "Don't worry about China," easing market risk perception.

All eyes turned to upcoming statements from Federal Reserve officials regarding the central bank’s policy direction. Philadelphia Fed President Anna Paulson said the focus of monetary policy should be on balancing the risks between maximizing employment and ensuring price stability, signaling a potential shift toward a more neutral stance.

Analysts say corporate earnings reports will be a key factor in determining market direction.

Gold hit a new high of $4,179.98 per ounce on Tuesday, continuing to rise, particularly following the federal government shutdown in the US. Gold is currently trading at $4,132.18, a 0.5% increase from the previous close.

The 10-Year Treasury yield is hovering at 4.04%, while the US Dollar Index is down 0.3% at 99.1. Brent crude oil declined 0.2% to $63.1 per barrel.

Trump’s more moderate tone following the tariff threats lifted the New York stock market. The Dow Jones gained 1.29%, the S&P 500 1.56%, and the Nasdaq 2.21%, though American futures started Tuesday negative.

US-based bank JPMorgan Chase announced it will invest up to $10 billion to meet the needs of key sectors and national security, pushing its shares up 2.4%.

Shares of chipmaker Broadcom surged 10% after announcing a partnership with ChatGPT-maker OpenAI.

Risk appetite in European markets rose on Monday due to growing expectations that US-China trade tensions may ease, along with a decline in geopolitical risks in the Middle East.

The FTSE 100 climbed 0.16%, the DAX 40 0.6%, the CAC 40 0.21%, and the FTSE MIB 30 0.29% on Monday, starting Tuesday in the red.

All eyes are now turned to Bank of England (BoE) Governor Andrew Bailey’s statements, expected on Tuesday.

At the same time, Asian stock markets are negative due to the US-China trade tensions and the political uncertainty in Japan.

Last week, nationalist Japanese politician Sanae Takaichi became president of the right-wing Liberal Democratic Party (LDP), positioning her to become Japan’s first woman prime minister.

The LDP ended its 26-year alliance with the Buddhist-backed centrist Komeito party, upending the ruling coalition, which hampered Takaichi’s premiership pathway.

Following these changes, the Nikkei 225 fell 1.2%, the Hang Seng Index 0.2%, and the Kospi Index 1.2%, while the Shanghai Composite Index followed a horizontal course.