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

US stock markets initially eased lower as uncertainty reigned over the size and scope of the latest move in Trump's campaign to shake up global trade, but by midday had moved into positive territory.

Asian and European stock markets clawed back some of their recent hefty losses, as traders hoped for greater clarity ahead of the impending tariffs.

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

US President Donald Trump has dubbed Wednesday "Liberation Day", vowing to impose levies on "all countries".

"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," said Kathleen Brooks, research director at trading group XTB.

"Markets are hoping for a clean decision, that allows traders to move on from tariffs."

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.

"Some on Wall Street are already talking about how April 2 may very well be lighter-than-feared," 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 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 the first quarter that ended on Monday the S&P 500 and the Nasdaq recorded their worst quarterly performance since 2022 as investors fretted over the impact of tariffs.

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

EU chief Ursula von der Leyen said Tuesday the bloc still hopes for a "negotiated solution" to US tariffs, but that "all instruments are on the table" to hit back if necessary.

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, a chief 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 Taiwan indicated it too had plans to deal with the announcement.

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.

- Key figures around 1530 GMT -

New York - Dow: UP less than 0.1 percent at 42,036.40 points

New York - S&P 500: UP 0.3 percent at 5,629.36

New York - Nasdaq Composite: UP 0.7 percent at 17,425.04

London - FTSE 100: UP 0.6 percent at 8,634.80 (close)

Paris - CAC 40: UP 1.1 percent at 7,876.36 (close)

Frankfurt - DAX: UP 1.7 percent at 22,539.98 (close)

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)

Euro/dollar: DOWN at $1.0808 from $1.0817 on Monday

Pound/dollar: UP at $1.2927 from $1.2916

Dollar/yen: DOWN at 149.30 yen from 149.94 yen

Euro/pound: DOWN at 83.61 pence from 83.69 pence

Brent North Sea Crude: UP 0.2 percent at $74.89 per barrel

West Texas Intermediate: UP 0.1 percent at $71.57 per barrel

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P.Adams--SFF