US markets ended lower on Tuesday, pressured by cautious sentiment ahead of the Federal Reserve’s policy announcement and mixed corporate earnings results. The S&P 500 slipped 0.30% after briefly hitting a record intraday high, while the Nasdaq 100 edged down 0.20% and the Dow Jones lost 204 points. Investors weighed softer-than-expected job openings and hiring data for June against stronger July consumer confidence figures. Trade talks between the US and China concluded without a deal, shifting market focus to the possible extension of the current tariff truce. Meanwhile, the Fed is widely expected to leave rates unchanged, with investors closely watching for any forward guidance on the policy outlook amid signs of easing inflation.

In Europe, equities closed higher, reversing Monday’s losses. The Eurozone's STOXX 50 rose 0.70% and the STOXX 600 added 0.20%, despite pressure from Novo Nordisk shares. The FTSE 100 reached a record high, climbing over 0.50% on strong earnings and improving UK economic sentiment.

The local currency weakened ahead of the South African Reserve Bank’s interest rate decision on Thursday, with markets largely pricing in a 25-basis-point cut. The FTSE/JSE All Share index closed 0.47% higher, bucking the softer currency trend. The rand also faced additional pressure from ongoing uncertainty around US tariff negotiations, with the threat of a 30% duty on South African exports weighing on sentiment.

In Asia, Hong Kong’s Hang Seng index dipped 0.15% as investor concerns grew around the impact of the new US-EU trade pact and the potential for broader global tariffs. US President Trump has floated a 15–20% tariff rate for non-negotiating partners, levels not seen since the 1930s.

Oil markets rallied, with WTI crude surging 3.70% to $69.20 a barrel — its highest level in five weeks. The rally was driven by easing trade tensions and heightened geopolitical risks, boosting expectations for stronger global demand.