ASIA/PACIFIC
Asian markets climbed on Tuesday, driven by renewed optimism over China’s economy following Beijing’s latest stimulus measures. Hong Kong’s Hang Seng Index led the region, rising 2.29%, while China’s CSI 300 gained 0.27%. Japan’s Nikkei 225 closed 1.20% higher ahead of the Bank of Japan’s two-day policy meeting, where the central bank is expected to keep interest rates at 0.5%. Meanwhile, Australia’s markets finished flat after Reserve Bank of Australia Assistant Governor Sarah Hunter emphasized that monetary policy decisions remain data-dependent, dampening expectations for imminent rate cuts.
EUROPE
European stocks ended higher on Tuesday after Germany’s €500 billion reformed spending package passed the Bundestag and advanced to the Bundesrat, boosting investor sentiment. A sharp rise in German investor confidence further lifted markets. Attention was also on an upcoming phone call between U.S. President Donald Trump and Russian President Vladimir Putin regarding a potential Russia-Ukraine ceasefire proposal, which could reduce geopolitical uncertainty. The pan-European Stoxx 600 gained 0.61%, with major bourses in the green: Germany’s DAX rose 1.05%, France’s CAC 40 added 0.54%, and UK’s FTSE 100 climbed 0.29%.
AMERICAS
Wall Street declined as ongoing economic uncertainties weighed on sentiment. Investors remained cautious ahead of the Federal Reserve’s policy meeting, where the central bank is expected to keep interest rates unchanged. The S&P 500 lost 1.1%, the Dow Jones Industrial Average fell 0.6%, and the Nasdaq Composite dropped 1.7%, driven by weakness in the tech sector.
AFRICA
Egypt’s blue-chip index edged up 0.5%, supported by investor confidence. Meanwhile, Moody’s expects South Africa’s coalition government to reach a compromise on the country’s deadlocked budget, maintaining its focus on fiscal consolidation.
MIDDLE EAST
Gulf markets ended mixed as geopolitical tensions escalated. Israeli airstrikes on Gaza killed 326 people, according to Palestinian health authorities, breaking a two-month ceasefire with Hamas. Saudi Arabia’s Tadawul dropped 0.8%, Dubai’s index fell 0.4%, while Abu Dhabi’s index inched up 0.1%, and Qatar’s market gained 0.6%. Despite a neutral market outlook for Q1 2025, half of Saudi fund managers surveyed by SNB Capital expect to increase their local equity exposure. The GCC economy is projected to remain resilient despite rising global protectionism and geopolitical tensions, according to the latest ICAEW Economic Insight report by Oxford Economics.
COMMODITIES
GOLD
Spot gold surged 1.1% to $3,035.70 per ounce, reaching a high of $3,028.24 earlier in the session, as tensions in Gaza fueled safe-haven demand. U.S. gold futures rose 1.3% to $3,043.70.
OIL
Prices retreated as optimism over Ukraine peace talks outweighed concerns over Middle East instability. Brent crude fell 0.52% to $70.70 per barrel, while U.S. WTI crude slipped 0.77% to $67.06 per barrel.
