Stock Selloff Declines as Trump Remarks Improve Attitude – Asia Market Wrap

Stocks in Asia rose, as did futures in Europe and the US, after Trump sought to reassure a business roundtable about the economy’s prognosis and the efforts he is doing to enhance growth.

A barometer of regional equities traded in a tight range, while Australia’s benchmark S&P/ASX 200 index was on the verge of a drop as Trump’s tariffs on steel and aluminium went into force with no exemptions. Treasuries gained, and the Dollar strengthened against all of its G-10 counterparts, ahead of a consumer inflation report later Wednesday.

Futures for the S&P 500 and Nasdaq 100 rose after Trump indicated he does not expect a US recession, calming Wall Street’s concerns about his trade war. Contracts for Europe rose by up to 1% after Ukraine agreed to a US plan for a 30-day truce with Russia.

Trump’s tariff policy, geopolitical realignments over Ukraine, sticky inflation, and the uncertain pace of Fed rate cuts have all weighed on markets this year, putting US stocks on the cusp of a collapse. The VIX index of stock volatility is nearing its highest level since August, while a similar measure for Treasuries has reached levels not seen since November, as market investors remain concerned about US economic growth.

In commodities, oil rose as the US reduced its prediction for global excess. Gold held its gains, aided by haven demand.