Tariff Threats Shake Global Markets: Traders Hesitate Before Fed Decision
Global markets faltered ahead of key earnings reports, U.S.-China trade talks, and the Federal Reserve's policy decision. U.S. threats of tariffs on China raised oil prices, while the dollar strengthened. Traders anticipated insights on inflation and job markets as major companies prepared to release earnings.
Global equities took a hit on Tuesday as U.S. investors braced for earnings reports from megacap companies and awaited the Federal Reserve's policy decision. Meanwhile, oil prices surged over $2 after U.S. Treasury Secretary Scott Bessent warned China of high tariffs if it continued buying Russian oil.
President Trump also stated that tariffs on Russia would commence in ten days unless Moscow made progress on the Ukraine conflict. As investors digested this news, the euro hit a one-month low amid concerns that a new U.S.-EU trade deal favored the U.S. economy over the EU's outlook.
Traders remained cautious with upcoming economic reports and company earnings, particularly from tech giants like Microsoft and Apple. Amid this backdrop, oil prices rose significantly, reflecting supply concerns exacerbated by U.S. trade policy threats against China and Russia.
(With inputs from agencies.)
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