Global Markets Stabilize; Carmakers Rise on Tariff Reprieve Hopes
By Dow Jones Newswires StaffMarkets were relatively stable Tuesday compared with last week's extreme volatility, with gains across most major Asian bourses and a modestly higher open in Europe.U.S. stock futures also nudged higher, while the dollar recovered slightly and the 10-year Treasury yield eased.Carmakers notched gains after U.S. President Trump on Monday said he was considering some short-term exemptions to his 25% tariff on foreign-made vehicle imports, on top of those for smartphones and other electronics. Still, the administration is weighing more targeted tariffs on semiconductors and on the pharmaceutical industry.Both the 10-year and 30-year Treasury yields fell Monday, and both are now trading "a fair way off the 'panicky' levels seen last week," said Pepperstone's Michael Brown in a note, notwithstanding levels of uncertainty remaining extremely elevated. The 10-year Treasury yield was down two basis points to 4.341% early in Europe, according to Tradeweb.Yields in eurozone government bonds and U.K. gilts tracked the Treasury yield lower.The dollar recovered slightly, with the DXY Dollar Index against a basket of major currencies rising 0.1% to 99.7530 after hitting a three-year low of 99.0140 Friday.Japanese stocks ended higher as fears about U.S. tariffs eased, with auto and bank shares leading gains. Australia's S&P/ASX 200 Benchmark Index gained 0.2%. The Nikkei Stock Average rose 0.8%. Auto stocks also contributed to a 0.9% gain for South Korea's benchmark Kospi index. South Korea earlier on Tuesday said it is readying roughly $23 billion in government support to aid its chip sector.Chinese shares closed mixed, however, with the benchmark Shanghai Composite Index edging up 0.15% and the Shenzhen Composite Index shedding 0.2%.U.S. stock futures were up early in Europe, with the Dow Industrials up 0.2%, the S&P 500 up 0.3% and the Nasdaq up 0.4%. The Stoxx 600 pan-market index was last up 0.6%, with gains for Germany's DAX of 1.0% while the U.K.'s FTSE 100 rose 0.7%. France's CAC 40 was a laggard, off 0.4%.Spot gold was 0.5% higher at $3,225.88 a troy ounce, with analysts expecting it to approach $3,300/oz before long.Write to Barcelona Editors at [email protected]