Global Market Turmoil Ahead of Trump's Tax Bill Vote

Global markets faced renewed turmoil on Tuesday as share values dipped, and the dollar remained at multi-year lows. This came on the heels of a significant drop in the first-half market performance, the worst since the 1970s, amid anticipation surrounding U.S. President Donald Trump's landmark tax-cut legislation.

European shares, which have gained approximately 6.5% year-to-date, fell 0.4% as debates over Trump's bill, potentially adding $3.3 trillion to U.S. debt, continued in the Senate. Further complicating the global economic landscape are ongoing trade negotiations and upcoming U.S. labor market data.

Market sentiment also faced additional political drama after President Trump proposed a review of subsidies to Tesla, threatening a bear market narrative amid fierce competition in the electric vehicle sector. Meanwhile, Nvidia teeters on becoming the most valuable company, and macroeconomic indicators from Asia suggest resilience against tariff impacts.

(With inputs from agencies.)