San Francisco Frontiers - Stock markets rise ahead of Trump tariffs deadline

In a sign of market uncertainty, safe-haven gold reached a fresh record high of $3,149 an ounce.

Investors are bracing for a fresh onslaught of tariffs on US President Donald Trump's "Liberation Day" due Wednesday, expected to see him impose levies on "all countries".

"Markets are hoping for a clean decision, that allows traders to move on from tariffs," said Kathleen Brooks, research director at trading group XTB.

"Hopes are that a recovery rally could take hold if Trump's tariff announcements are seen as the final move from the White House in its trade war," she added.

But she warned that "the downside risk for stocks could emerge once more if Trump suggests that even more tariffs could be coming down the line".

Trump said Monday he would be "very kind" when he unveils the tariffs.

But the lack of details on who will be hit with what has stoked market unease and fears of a recession in the world's largest economy.

In Europe, Paris and Frankfurt extended the morning's gains after data showed inflation in the eurozone slowed closer toward the European Central Bank's two-percent target in March.

London also rose, even as Prime Minister Keir Starmer said Britain is likely to suffer from US tariffs and despite making progress over a post-Brexit trade deal.

"While countries such as the UK might stand in a good position to strike a deal, there is a risk that tomorrow marks the beginning of a tit-for-tat trade war that brings yet more uncertainty and concern for markets," said Joshua Mahony, chief market analyst at Scope Markets.

"The expected retaliation from Canada, the eurozone, China, Japan, and Korea does signal that it could get worse before it gets better," he added.

On Tuesday, Vietnam said it would slash duties on a range of goods including cars, liquefied gas and some agricultural products, while the European Union and Taiwan indicated they had plans to deal with the announcement.

"Some on Wall Street are already talking about how 'April 2' may very well be lighter-than-feared, producing a snap-back rally in risk assets," said Jose Torres, a senior economist at Interactive Brokers.

"But others worry that this economy can't handle a stress test of this magnitude and point to households increasingly unable to sustain expenditure patterns in light of mounting headwinds."

The Tokyo stock market, which has borne the brunt of the pain owing to hefty selling of car giants including Toyota and Honda on tariff plans, closed flat while Hong Kong and Shanghai advanced.

The rebound was as fragile as that seen in New York, where the S&P 500 rose on Monday but closed its worst quarter since 2022.

That came after Wall Street's so-called VIX "fear index" rose for a fourth successive day.

- Key figures around 1030 GMT -

London - FTSE 100: UP 0.7 percent at 8,638.69 points

Paris - CAC 40: UP 0.7 percent at 7,842.85

Frankfurt - DAX: UP 1.0 percent at 22,380.79

Tokyo - Nikkei 225: FLAT at 35,624.48 (close)

Hong Kong - Hang Seng Index: UP 0.4 percent at 23,206.84 (close)

Shanghai - Composite: UP 0.4 percent at 3,348.44 (close)

New York - Dow: UP 1.0 percent at 42,001.76 (close)

Euro/dollar: DOWN at $1.0809 from $1.0817 on Monday

Pound/dollar: UP at $1.2922 from $1.2916

Dollar/yen: DOWN at 149.47 yen from 149.94 yen

Euro/pound: DOWN at 83.64 pence from 83.69 pence

Brent North Sea Crude: UP 0.6 percent at $75.21 per barrel

West Texas Intermediate: UP 0.6 percent at $71.94 per barrel

J.Peterson--SFF