Stocks and Dollar Remain Steady Amid Inflation Concerns in U.S.-China Trade Truce

On Tuesday, global stocks experienced subdued trading, while the dollar remained flat. This period of stability came as a tariff truce extension between Washington and Beijing faced competition from ongoing concerns about imminent U.S. inflation data.

Asian markets witnessed a rally following U.S. President Donald Trump's executive order to pause hefty tariffs on Chinese imports for 90 days, boosting Tokyo's Nikkei to unprecedented levels. However, the focus on the U.S. consumer price index data took precedence, especially after a recent weak jobs report raised fears of stagflation—a scenario of rising inflation and slowing growth.

Investors are anticipating at least two rate cuts by 2025, impacting the dollar's strength. Meanwhile, the Bank of England's reluctance to mirror global central bank rate cuts contrasts with the Reserve Bank of Australia's recent rate reduction. Overall, markets remain cautious, looking toward key economic indicators and geopolitical developments for direction.

(With inputs from agencies.)