Global Markets React to Calm in Metals Trading as U.S. Factory Activity Surges

Global markets rebounded as calm returned to metals trading, spurred by a surge in U.S. factory activity. Australia's rate hike and positive movements in Asian stocks, along with notable fluctuations in gold and silver prices, influenced market dynamics. Meanwhile, the U.S.-India trade deal impacted currency and stock exchanges.

Global markets experienced a rebound Tuesday as calm prevailed in metals trading, following volatile swings. A sharp increase in U.S. factory activity contributed to the improved mood. Australia's central bank, the first among G10 nations this cycle, raised interest rates, thus strengthening the Australian dollar.

Asian stocks also benefited, with Japan's Nikkei and South Korea's KOSPI making significant gains. Meanwhile, U.S. stocks reacted to a busy earnings session ahead with minimal increase. Gold and silver saw significant price rebounds from earlier declines.

Australia's rate hike decision rested on above-target inflation and a tight labor market, creating market ripples globally. Furthermore, a new U.S.-India trade deal buoyed Indian shares by reducing tariffs in exchange for halting Russian oil purchases. Overall, this shifting economic landscape hints at further developments.

(With inputs from agencies.)