Tariff Turmoil: Global Market Reactions and Trade Negotiations

Global stocks were flat to slightly higher on Tuesday as investors absorbed President Donald Trump's new tariff strategy. The announcement involved increased duties on imports from nations, including major Asian partners like Japan, leading to a 25% hike. As Trump's letters reached 14 countries, market reactions were relatively restrained.

European markets, represented by STOXX 600, hovered near unchanged figures, while the euro experienced a 0.4% rise. Hopes are pinned on Europe securing a trade deal by Wednesday to dodge steeper tariffs. Analysts like Daniela Hathorn express optimism for a preliminary agreement, which might forestall immediate economic impacts.

In the U.S., S&P 500 futures stabilized post-sell-off, with Goldman Sachs projecting positive returns due to potential interest rate cuts. Conversely, the trade impasse persists, with only Britain and Vietnam finalizing agreements. Trump's unpredictable policy-making is challenging global economic stability, complicating matters for central banks.

(With inputs from agencies.)