Today's Edition
TOKYO/LONDON (Reuters)
Global stocks rose on Tuesday following Wall Street's overnight gains, while gold hit an all-time peak and Treasury yields fell as markets awaited details of US President Donald Trump's reciprocal tariffs.
The Japanese yen held firm, as did the Swiss franc, as traditional haven assets drew demand.
At the same time, the risk-sensitive Australian dollar rebounded after the Reserve Bank of Australia left interest rates steady, as widely expected, but warning of "pronounced" global uncertainty.
Investors are nervously awaiting April 2, a day Trump has dubbed "Liberation Day", when he has promised to unveil a massive reciprocal tariff plan.
The Office of the US Trade Representative released its annual report on foreign trade barriers on Monday, which contained scores of other countries' policies and regulations it regards as trade barriers.
Yet it was unclear how the 397-page report will impact Trump's reciprocal tariff plans.
European stocks got off to a stronger start, after the previous day's bout of profit-taking, particularly in assets that are highly vulnerable to US tariffs. The index, which rose 5.1% in the first three months of the year, was up 0.7% in early trading, with pharma and technology stocks leading the way.
Uncertainty is running high. Various measures of stock, bond and currency volatility have risen sharply in the past few days, reflecting the challenge for investors of trading the unknown.
The S&P 500 gained 0.55% on Monday, snapping a three-day losing run, but futures eased 0.1%.
Gold powered to a record high for a fourth straight session, hitting $3,148.88 per ounce.
"On top of general risk aversion, investors are increasing allocation to gold with the Trump administration's trade policy threatening the dollar's special reserve status," said Kyle Rodda, senior financial markets analyst at Capital.com.
"The fundamental backdrop remains strong for gold."
DOLLAR UNDER PRESSURE
Demand for the safety of Treasuries sent yields lower on Tuesday, as prices rose, with those on benchmark 10-year notes falling nearly 6 basis points to 4.188%.
That kept the dollar in check, leaving the euro narrowly lower on the day at $1.0801, while the yen held steady at 149.875 and the Swiss franc strengthened, leaving the dollar down 0.1% at 0.883 francs.
Investor caution towards US assets has resulted in continued pressure on the dollar, which posted its worst first-quarter performance against a basket of currencies in nine years this year, with a drop of nearly 4%.
Oil prices edged up, extending Monday's 2% rally. Brent crude was up 0.1% at $74.79 a barrel, while U.S. crude rose 0.1% to $71.52.
At the weekend, Trump threatened secondary tariffs on Russian crude and on Iran.
