Global markets showed resilience on Tuesday, shrugging off renewed tariff threats from U.S. President Donald Trump against South Korea. Instead, investors appeared to be primarily focused on the booming tech sector and the anticipation of a wave of mega-cap earnings reports due this week. Companies such as Microsoft, Meta, and Tesla are all scheduled to release their earnings, further fuelling investor interest in the sector.
Despite the general optimism, some caution remained evident. Gold and silver prices held steady amidst ongoing global uncertainty, and the U.S. dollar continued to face downward pressure. The weakness in the dollar is partly attributed to lingering concerns about potential coordinated intervention aimed at bolstering the Japanese yen, especially with a snap election on the horizon next month.
In other developments, India and the European Union announced a long-awaited trade agreement designed to reduce duties on a wide range of goods. The deal, which has been dubbed “the mother of all deals”, is expected to be formally signed after a vetting process is completed in both India and the EU, and could be implemented within a year. The agreement aims to cut duties on almost 97% of EU exports and 99.5% of Indian exports.
