Global markets firmed on Tuesday as Wall Street rebounded on tech strength and Europe steadied amid central-bank signals, while most Asian markets gained on optimism around a December Fed rate cut. Broader risk appetite improved despite pressure from rising Japanese yields and concerns over China’s property sector.
US stocks rose on Tuesday as markets steadied following Monday’s volatile start to December. The S&P 500 gained +0.3%, the NASDAQ advanced +0.7%, and the DOW added +0.2%, supported by a rebound in risk appetite as Bitcoin halted its slide and Japanese bonds recovered. Investors continued to assess delayed US economic data for clues on the Federal Reserve’s next move, with markets now pricing in an 87% chance of a December rate cut despite signs that tariffs are weighing on factory activity. Intel jumped +7.4% amid renewed speculation it could supply chips to Apple in coming years. Boeing rallied +8.8% after its CFO said deliveries should accelerate next year. Meanwhile, the SEC announced plans to ease IPO requirements to ‘make listings great again’, and OpenAI declared a ‘code red’ internally as competition intensifies from Google and Anthropic in the race to build more capable AI models. In the bond market, US two-year yields slipped -2bp to 3.522%, while the US ten-year yields remained flat at 4.082%.
European stocks markets held steady on Tuesday, as investors assessed fresh inflation data and central-bank signals. The STOXX 600 finished up +0.1%, with the FTSE 100 unchanged, Germany’s DAX rising +0.5%, and France’s CAC 40 falling -0.3%. UK banks climbed after the Bank of England cut its estimate of required capital for the sector for the first time in a decade, freeing room for additional lending and potential shareholder payouts; Lloyds gained +2.0%. Bayer surged +12.1% after securing support from the Trump administration to limit US litigation linked to its Roundup weedkiller. Meanwhile, eurozone flash inflation ticked up to 2.2% in November, slightly above expectations, reinforcing the cautious tone across European markets.
Asian stocks ended mostly higher on Tuesday as investors looked past yesterday’s Bitcoin sell-off and lingering worries over rising rates in Japan. China’s Shanghai Composite slipped -0.4% amid caution ahead of key policy meetings and renewed concerns over China Vanke’s bond repayments, while Hong Kong’s Hang Seng edged up +0.2%. Japan’s Nikkei 225 finished flat after an auction of 10-year government bonds boosted sentiment, even as yields touched a 17-year high of 1.88% on rising expectations of a Bank of Japan rate hike; consumer confidence also hit its strongest level in 19 months. South Korea’s Kospi jumped +1.9% as automakers surged after the US confirmed that general tariffs on imports from Korea would drop to 15%, sending Hyundai and Kia up +4.5%. Australia’s ASX 200 added +0.2%, led by gains in miners and energy producers on firmer copper and iron ore prices, while New Zealand’s NZX 50 rose +0.4%, recovering losses from the previous session.
WTI crude inched down -0.6% US$58.94/bbl, gold slipped -0.9% to US$4,195.19/oz, and iron ore gained +2.0% to US$106.94/MT.