Market Rollercoaster: Trade Tensions and Tumbling Currencies

Global markets reacted to evolving U.S. trade policies with Hong Kong's Hang Seng reaching highs amid tariff suspensions by President Trump. Currencies and equities fluctuated significantly as investors navigated uncertain policy landscapes, underscoring negotiation dynamics and their impact on financial markets.

Global markets experienced a turbulent day as sudden shifts in U.S. trade policy caused significant fluctuations in shares and currencies. Hong Kong shares reached two-month highs while U.S. equity futures saw a rise, as President Trump suspended planned tariffs after promising increased border enforcement.

Hong Kong's Hang Seng index rose by 2.5%, led by electric vehicle makers, despite impending tariffs on Chinese goods. Meanwhile, Li Auto and semiconductor maker SMIC saw notable stock gains. The U.S. dollar reversed earlier gains, causing volatile swings in the euro and other currencies as investors reacted to Trump's negotiation tactics.

European equity futures rose 0.2%, mirroring cautious gains in Japan and Australia. The dip in oil prices and the close to record highs in gold reflected ongoing trade tensions and economic uncertainty. Analysts suggest the financial market should brace for continued volatility due to unpredictable trade policies.

(With inputs from agencies.)