NEW YORK, United States (AFP) — Global stock markets mostly rose Tuesday on a quiet day of trading ahead of US President Donald Trump’s widely-touted announcement on reciprocal tariffs.

US stock markets initially ticked lower as uncertainty reigned over the size and scope of the latest move in Trump’s campaign to shake up global trade, but closed in mixed territory, a day before Trump’s self-described “liberation day” announcement.

The White House has now penned the announcement in for Wednesday at 4:00 pm local time in Washington (2000 GMT), after Wall Street markets close.

“What Trump announces and the level of tariffs will likely move markets,” Adam Sarhan from 50 Park Investments told
AFP.

“If you have a situation where it’s weaker than expected, or there’s more delays, or it’s not as tight as people are fearing, then the market will likely rally,” he said.

“If you have a situation where Trump decides to go aggressive and announce higher-than-expected tariffs, then the market will likely fall,” he continued, adding: “This is a game of expectations.”

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

Underscoring the market uncertainty, safe-haven gold touched a fresh record high of US$3,149 an ounce on Tuesday.

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.

European Union 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 warned that Britain would likely suffer from US tariffs 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.

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.