Global markets rebound after intense selling pressure

ISTANBUL

Global markets rebounded Tuesday as signs of possible tariff talks between the US and major trading partners lifted investor sentiment.

“There can be permanent tariffs and there can also be negotiations,” US President Donald Trump said on Monday at a press conference.

He also threatened to raise tariffs on China by another 50% if Beijing does not backtrack on its 34% retaliatory tariffs on all US imports.

Trump said he spoke with Japanese Prime Minister Shigeru Ishiba and that Tokyo is sending a “top team to negotiate” tariffs. On Truth Social, he said “tough but fair parameters” are being set and urged Japan to buy more American cars, agricultural products and “many other ‘things’.”

With rising risk perceptions and mounting concerns over global growth, traders increasingly expect the US Federal Reserve to cut interest rates this year, with the next cut anticipated in June, according to money market estimates.

Following this, the yield on the US 10-year Treasury bond rose to 4.15% on Tuesday, while the US Dollar Index fell 0.5% to 102.9.

Gold, which ended Monday at $2,982 per ounce – down 1.8% – was trading with a 0.5% gain at $3,000 per ounce Tuesday.

Brent crude oil climbed 0.9% to $64.90 per barrel.

On Monday, the S&P 500 fell 0.23% and the Dow Jones Industrial Average dropped 0.91%, while the Nasdaq edged up 0.1%. US futures began Tuesday in positive territory.

European stocks also moved higher Tuesday, recovering from the worst four-day decline since 2020.

European Commission President Ursula von der Leyen said the bloc seeks negotiations on tariffs but is prepared to implement countermeasures if talks fail.

Analysts say the EU’s negotiation-focused approach has eased fears over an escalating trade war, shifting attention to developments in upcoming discussions.

Asian markets turned positive Tuesday following Monday’s intense sell-off, buoyed by renewed hope for negotiations.

South Korean Prime Minister and Acting President Han Duck-soo said Seoul would send its trade minister to the US for talks.

Japan’s current account showed a surplus of just over 4 trillion Japanese yen ($27.1 billion) in February and a foreign trade surplus of 713 billion yen ($4.8 billion), according to data released Tuesday.

After steep losses Monday, Japan’s Nikkei 225 rose 6%, South Korea’s Kospi Index added 0.26%, China’s Shanghai Composite Index increased 1.58%, and Hong Kong’s Hang Seng Index climbed 1.5% Tuesday.

In Türkiye, the BIST 100 was among the few markets in positive territory Monday, gaining 0.29%, and opened higher Tuesday.

The US dollar/Turkish lira exchange rate was flat at 37.9890, up 0.1% to 38.0050 on Tuesday.