US Treasury yields dipped on Tuesday, with the 10-year note falling below 4.38%, over 8bps off its session high, as signs emerged that the US may de-escalate its trade war against China softening investors' capital flight to foreign assets. Treasury Secretary Scott Bessent suggested that current tariffs are unsustainable, lifting sentiment and reversing some of Monday’s selloff in equities and the dollar. The comments softened the selloff for dollar-denominated assets yesterday, as the combination of the ongoing trade war against China with the Trump administration threats against the Federal Reserve's autonomy drove funds to pivot to gold and foreign markets. However, the US administration outside the Treasury remain in favour of broader tariffs on copper, semiconductors, rare earths, lumber, and pharmaceuticals. US stocks rallied on the easing trade war narrative. 

Against this mixed backdrop, the S&P 500 and Dow Jones each climbed nearly 2% closing at 5 243.27 and 38 815.24 respectively, while the tech-heavy Nasdaq 100 advanced 1.83% ending on 16 161.60 on robust buying in growth-oriented sectors. Tesla surged 6.30% ahead of its earnings release, with Amazon, Apple, and Meta each gaining over 3.50%. General Electric jumped 6.50% following an earnings beat, though Verizon underperformed. Meanwhile, investors remain on edge as uncertainty surrounding trade negotiations persists and President Donald Trump intensifies his criticism of Federal Reserve Chair Jerome Powell. 

Asian markets saw mixed performance on Tuesday. In Japan, the Nikkei 225 slipped 0.17% to close at 34 220.60, pressured by losses in semiconductor and AI-related stocks. Investors reacted cautiously to concerns over rising competition from Chinese tech firms and a more hawkish Bank of Japan, which recently raised interest rates and revised its inflation outlook upward. Chinese equities edged higher, with the Shanghai Composite posting modest gains at 0.34% to close at 3 302.76, while the Hang-Seng closed at 21 532, 0.64% higher. Sentiment was lifted by speculation that the US may ease tariffs on Chinese goods, offering potential relief amid ongoing trade tensions. 

European stocks reversed early losses to close higher on Tuesday, benefiting from the rebound in US equities as markets continued to assess how risks of lower trade with the US may impact European corporate giants. The Eurozone's STOXX 50 added 0.40% to close at 4 956 and the STOXX 600 advanced 0.20% to close at 508. Germany’s DAX pared some early losses to close about 0.4% up at 21 294 on Tuesday, in line with most European peers. Auto producers were among the top gainers of the session, with Mercedes Benz, BMW and Volkswagen all adding more than 2%. On the earnings front, L'Oreal surged by over 6% after posting strong results. Novo Nordisk sank more than 7% after US rival Eli Lilly reported strong results on its new weight-loss drug. 

South Africa’s All Share Index (ALSI) closed at 89 912, up by 0.48%, supported by gains in mining and financial stocks. At 20h23 SAST, the rand traded at 18.59 to the US dollar. 

President Trump’s criticism of the Federal Reserve chair unsettled investors, driving increased demand for safe-haven assets and pushing gold prices to a record high above $3,500 per ounce. Brent crude oil rose by 1.77% to settle at $67.43 per barrel.