US stocks mostly gained on Tuesday as markets assessed the potential impact of trade barriers following tariff threats from President-elect Donald Trump and the release of minutes from the Federal Reserve’s last meeting. The S&P 500 and Nasdaq rose 0.50%, while the Dow recovered earlier losses to hover near break-even. The FOMC minutes revealed caution about the pace of rate cuts, citing economic uncertainty and persistent inflation risks. Investors remained divided on whether the central bank would implement another rate cut in December.
In Europe, stocks extended their morning declines to close lower, reflecting cautious global sentiment after President-elect Trump reiterated threats of higher tariffs, including a 10% increase on Chinese goods and a 25% hike on imports from Mexico and Canada. The Eurozone’s Stoxx 50 fell 0.80% to 4 762, while the pan-European Stoxx 600 dropped 0.50% to 506. Concerns over the implications of another Trump administration on global trade weighed heavily on European markets.
In Asia, the Hang Seng ended nearly flat at 19 159, with gains in property and financial stocks offsetting losses in technology and consumer sectors. This followed three consecutive sessions of weakness as investors considered reports of Trump’s planned 10% tariff on Chinese imports. Meanwhile, Chinese Embassy officials in the US warned that a trade war would be detrimental to both nations. Hong Kong’s October trade data is due later today, following a two-year high in exports and imports in September. Japan’s Nikkei dropped 0.87% to 38 442, reversing a two-day rally as global sentiment deteriorated.
In South Africa, the rand weakened on Tuesday, while the JSE firmed amidst mixed performance among global markets. Investors reacted to Trump’s announcement on Truth Social about raising tariffs by 10% on all Chinese goods and his plan to impose 25% tariffs on all products from Mexico and Canada, which would effectively terminate the regional free-trade agreement. Trump cited illegal immigration and drug trafficking as reasons for the tariffs. The JSE All Share Index rose 0.62% to close at 85 397 points.
Brent crude futures steadied around $73.10 per barrel after a nearly 3% drop in the previous session. The decline followed reports that Lebanon and Israel had reached an agreement to end the Israel-Hezbollah conflict, easing concerns about potential disruptions to Middle Eastern oil supplies.
