Most global equity markets moved into positive territory after a period of weakness. Investors appear to have taken a breather amid heightened geopolitical tensions in the lead-up to 'Liberation Day'. Wall Street was mostly higher, while Europe and Australasia ended the session firmly in the green.
Wall Street bounced back after early losses, with the S&P 500 recovering from a -1.0% drop to sit +0.1% above the flat line at the time of writing. The DOW slipped -0.2%, while the NASDAQ gained +0.6%. Megacaps led the rebound: Amazon, Nvidia, and Meta each rose ~+1%, while Microsoft and Tesla added +1.6% and +5.9% respectively. Tesla’s gain comes ahead of its 1Q deliveries report, due tomorrow. Goldman Sachs raised its recession probability to 35% (from 20%) despite still forecasting further interest rate cuts this year. In corporate news, Johnson & Johnson fell -5.2% after a judge rejected its US$10b settlement offer to end class-action lawsuits alleging its baby powder and talc products cause ovarian cancer. In bond markets, the US two-year Treasury yield fell -6 bps to 3.85%, while the 10-year dropped -9 bps to 4.15%, helping support equities.
European stocks rose on Tuesday as investors stepped in to buy the dip after several days of declines. The STOXX 600 gained +1.1%, while London’s FTSE 100 rose +0.6% despite ongoing import tax tensions with the US. Fresh data showed Eurozone inflation eased in March, driven by lower energy and service sector prices. Headline CPI rose +2.2% year-on-year, down from +2.3% in February. Unemployment also edged lower, falling from 6.2% in January to 6.1% in February.
The ASX 200 rose +1.0%, supported by a calm session on Wall Street. As expected, the Reserve Bank of Australia held the benchmark cash rate at 4.1% and noted it is well placed to respond to ongoing geopolitical tensions around tariffs and trade. Energy stocks gained on stronger oil prices, with Woodside and Santos each up +1.7% following fresh oil sanction threats from Russia and the US. James Hardie fell -3.9% after an investment bank cut its target price for the second time since the company announced its cash acquisition of AZEK. In New Zealand, the NZX 50 added +0.4%. Across Asia, major benchmarks remained positive. Japan’s Nikkei 225 was flat at +0.0%, while Hong Kong’s Hang Seng and China’s Shanghai Composite rose +0.4%. The CSI 300 held steady at +0.0%, and Korea’s Kospi climbed +1.6%.
WTI Crude fell -0.4% to US$71.20/bbl, Gold lost -0.2% to US$3,116.02/oz, Iron Ore added +0.1% to US$102.50/MT.