Arab, Asian, and European stock markets opened higher on Tuesday recovering some losses incurred over the past two days amid a general recovery in global markets. S. futures also rose slightly after a day of turmoil on Wall Street. This recovery was supported by a broad wave of buying.
Turmoil triggered by tariff plans
Major stock indexes around the world experienced a significant decline on Monday, as U.S. President Donald Trump showed no indication of retreating from his extensive tariff plans. Investors began to speculate that the escalating risk of recession might lead the Federal Reserve to consider cutting interest rates as soon as May. Futures markets responded swiftly, pricing in nearly five quarter-point rate cuts in the U.S. this year, which resulted in a sharp drop in Treasury yields and a weakening of the dollar in safe-haven assets.
The turmoil unfolded as Trump told reporters that investors would need to “take their medicine,” asserting he would not negotiate a deal with China until the U.S. trade deficit was addressed. In response, Beijing remarked that “the markets had spoken” regarding their strategies for retaliation.
Gains in the Saudi and UAE markets
The Saudi TASI index rose by 1.8 percent at the start of trading, with shares of Al Rajhi Bank up 3.5 percent and Aramco increasing by 1.4 percent.
The main index of the Dubai Financial Market (DFM) also climbed over 1 percent, with shares of Emaar Properties up 2.6 percent, Emaar Development up 2.9 percent, and Talabat rising by 4 percent.
In Abu Dhabi, the FTSE ADX 15 index increased by 1.7 percent, supported by gains in ADNOC Gas, Aldar Properties, and “Multiply, each rising more than 3 percent. Additionally, the Kuwaiti premier market index (BKP) surged by about 3 percent, with shares of National Bank of Kuwait, Kuwait Finance House, Salhia, and IFAH.KW rising between 3.2 percent and 4 percent.
The Muscat and Qatar stock indices each rose by more than 1 percent. Meanwhile, Egypt’s top stock gainers also opened higher by 0.4 percent, marking its first morning gains this month.
Read more: Stock market downturn: Asia reacts to Trump’s tariff plans, recession fears
European markets stabilize
European markets also moved into positive territory after a rocky start to the week. The British FTSE 100 climbed 1.3 percent shortly after the opening bell, Germany’s DAX increased by 0.9 percent, and France’s CAC 40 rose by 1.3 percent.
Asian stock markets rebounded after suffering their worst day ever, bringing an end to a global downturn triggered by fears that the trade war could hinder economic growth. U.S. Treasury bonds stabilized following a sharp sell-off on Monday, while U.S. index futures advanced.
Other Asian indices rise
Japan’s Nikkei index closed up just over 6 percent on Tuesday, recovering some of the nearly 8 percent losses recorded on Monday.
South Korea’s KOSPI index rose by 0.3 percent, Australia’s S&P/ASX 200 increased by 2.2 percent, and India’s NIFTY 50 index climbed nearly 2 percent.
Hong Kong’s Hang Seng index, which experienced its worst day since 1997 on Monday with a 13 percent drop, rebounded with a 1 percent gain on Tuesday. Shanghai’s Composite Index also grew by 1.4 percent.
As of early Tuesday morning, Dow Jones futures were up nearly 2 percent, S&P 500 futures were up more than 1.5 percent, and Nasdaq futures rose by 1.3 percent.
