US stock markets declined on Tuesday as investor confidence was shaken by US President Donald Trump’s conflicting statements on trade talks, coinciding with the start of the Federal Reserve’s two-day policy meeting. The S&P 500 dropped 0.50%, the Nasdaq fell 0.60% and the Dow Jones lost over 300 points. Market sentiment soured after President Trump’s latest remarks contradicted earlier assurances of Treasury Secretary, Scott Bessent, on the progress on trade agreements, leading to renewed uncertainty over potential tariff relief. The Fed is widely expected to keep interest rates unchanged, but investors will closely watch Chair Jerome Powell’s economic outlook - particularly his assessment of the economic risks posed by tariffs and their potential impact on inflation and growth.

In Europe, equities edged lower on Tuesday, easing back from a four-week rally as investors weighed mixed earnings, political developments and persistent uncertainty around economic demand. The Eurozone’s STOXX 50 slipped 0.40% to 5 261, and the broader STOXX 600 declined 0.20% to 536. German markets failed to recover earlier losses despite Friedrich Merz being elected chancellor in a second-round parliamentary vote, after the initial round ended inconclusively.

Asian markets posted gains with easing trade concerns and positive economic data. Chinese shares surged after the People’s Bank of China announced cuts to key interest rates, including mortgage rates and lowered the reserve requirement ratio for banks to boost liquidity and support the economy. US President Trump mentioned ongoing discussions with countries including China. Hong Kong’s Hang Seng Index rose 0.70% to 22 663—a one-month high and its fourth consecutive gain. Hong Kong’s economy expanded 3.10% y/y in 1Q25, the fastest growth in five quarters, supported by tourism and strong exports ahead of planned US tariffs. A strengthening yuan and intervention by the Hong Kong Monetary Authority to stabilise the local dollar also lifted sentiment. Japan’s Nikkei advanced 1.04% to 36 830 on Friday, while the Topix climbed 0.31% to 2 688, both hitting monthly highs amid global trade optimism.

In South Africa, the rand traded steadily on Tuesday following the release of the South Africa’s S&P Global PMI, which rose to a neutral 50 points in April—indicating stabilisation in the private sector after four months of contraction, as sales showed modest improvement. By 21h00, the rand was at R18.16/$ and the JSE closed nearly unchanged, up by 0.04%. 

Meanwhile, oil prices bounced back, with WTI crude futures jumping 4% to $59.40 a barrel. The rally followed technical signals that the market was oversold and attracted bargain hunters. Prices were also buoyed by renewed Chinese demand after a holiday break and signs of a potential slowdown in US shale output, which helped ease concerns over excess supply.