Global stocks on Tuesday collected some of their vast recent losses from the turmoil caused by the Trump administration’s announcement of wiping out last week’s global tariffs in financial markets, if not political.
Most major indicators in Europe and Asia have climbed, and pre-market trading in the US appeared to be cautiously positive. The war with China deepens and Beijing announced that it will “fight to the end” after President Donald Trump threatened 50% tariffs on Chinese goods.
Trades in the US market show how the market opens. The S&P 500, high-tech heavy Nas Daq and the Dow Jones Industrial Average all rose 1% to 2% on Monday after Wild Trading Day put investors uncertain about the impact of aggressive tariffs on the global economy.
European stocks rose, with Stoxx 600, the index of Europe’s biggest companies, rising 1.4% around 6:30 ET after cutting 4.5% on Monday. The main indexes in the UK, Germany, France and Italy all rose from 1% to 2% after plunging at double digit rates over the past week.
These reversals repeated similar benefits in Asia. Mainland China’s main index, Hong Kong and South Korea, rose between 1% and 3%, while Japan’s Japan 225 index jumped to 6%, cutting the majority of Monday’s losses.
One factor in the increase may be confirmation that the Japanese government has agreed to designate members of the Cabinet to undertake trade talks with the Trump administration.
Financial markets were mild on Tuesday, but the Trump administration’s collection continued to spark geopolitical conflicts around the world.
European Commission’s Usla von der Leyen said Trump had been offered a “zero of zero” tariff deal by the European Union, but the US president later refused.
Despite initial speculation that China might win a delay over the introduction of tariffs, Trump said late Monday that the US would impose a 50% tariff on China if Beijing did not reverse the 34% mutual tariff.
China appears to be doubling its own stance on Tuesday, with its Commerce Department calling it “fully justified” if Trump’s additional tariffs on Chinese goods come into effect, and “fighting to the end.”
Trump said he was not trying to suspend tariffs before it became effective, threatening to come into effect Wednesday if the new 50% obligation on China increased China’s total to 104% and failed to withdraw 34% tariffs on all US goods.
“And further, all consultations with China regarding the requested meeting with us are over!” Trump wrote on Monday about the True Society. “Negotiations with other countries calling for a meeting will begin soon.”
Trump also seemed undiscovered by the volatility in the market that has captivated fears of the recession, particularly as Beijing’s retaliatory tariffs are scheduled to come into effect Thursday.
“I’m fine with that because I’m seeing a beautiful photo at the end,” he told White House reporters on Monday, adding that despite the fuss between investors and the business community, he hasn’t seen tariffs as if to suspend them.
“Taxes will make this country very rich,” he insisted.