Global Equities Sway as Investors Watch Trade Policies and Fed Moves

Global equities experienced a downturn on Tuesday, alongside a decline in the dollar, as investors awaited updates on U.S. trade policies. Meanwhile, oil futures bounced back following Monday's sell-off, and attention focused on the Federal Reserve as it begins a two-day policy meeting.

The MSCI global index managed to recover some losses after the election of Friedrich Merz as Germany's chancellor improved sentiment, despite a brief downturn. Concurrently, trade tensions between the U.S. and global partners, notably China, kept market investors on edge. Uncertainty about impending trade deals caused apprehension among traders.

In financial markets, Wall Street observed declines across major indices, with notable drops in the Dow Jones, S&P 500, and Nasdaq. Investors remained particularly interested in the Fed's upcoming strategies amid prevailing uncertainties in the economic landscape. Simultaneously, commodities like oil and gold saw notable gains, driven by technical rebounds and tariff concerns.

(With inputs from agencies.)