Markets mixed as investors digested corporate earnings

US equities were volatile on Tuesday as investors assessed a new round of corporate earnings and tariff-related developments. The S&P 500 slipped by 0.07% and the Dow Jones fell 0.18%, putting an end to their two-day rally. Meanwhile, the Nasdaq ticked up to 0.03%. Uncertainty persisted over the continuation of tariff exemptions on key electronics and concerns that the Trump administration might raise corporate taxes to offset the impact of expiring tax cuts. Although markets have recently rebounded, all three major indices are still trading below their early April 2025 levels, pressured by ongoing geopolitical instability and cautious investor sentiment.

European stocks ended higher on Tuesday, building on the strong gains from the previous session. Optimism around the potential delay of US auto and parts tariffs lifted key sectors, with the Eurozone's STOXX 50 climbing 1.20% and the broader STOXX 600 gaining 1.60%. Investor confidence was boosted by President Trump’s comments on Monday suggesting he may temporarily exempt tariffs on imported vehicles and parts to allow automakers time to increase domestic production. This not only benefits companies exposed to the auto industry but also raised hopes that tariff decisions might be more measured.

South Africa’s stock market rose 0.90% on Tuesday. However, mining production plunged by 9.60% year-on-year in February 2025, following a revised 1.50% drop in January, marking the sector's fourth straight month of decline and its steepest drop since November 2022. The rand weakened to R19.04 against the US dollar by 21h20 SAST.

In Asia, the Hang Seng advanced 0.25% on Tuesday, marking its sixth consecutive gain and maintaining a two-month high. Market sentiment was supported by the continuation of US tariff exemptions on certain electronics, which eased worries about retaliatory tariffs on China. Japan’s Nikkei also rose by 0.84%, extending Monday’s gains and drawing momentum from Wall Street’s positive performance.

WTI crude oil prices slipped toward $64.61 per barrel, weighed down by signs of weakening global demand and a potential oversupply. The International Energy Agency significantly reduced its 2025 demand forecast, warning of a possible surplus extending into 2026. Both OPEC and the EIA also lowered their projections amid sluggish economic growth, trade tensions, and decreased fuel consumption. Concerns are mounting that President Trump’s tariff policies could slow down the global economy, especially affecting major oil consumers like the US and China.