Global stock markets mostly end in green on US optimism

European and Asian stock markets mostly rose Tuesday following another tech rally on Wall Street.

Traders also assessed tariff plans of incoming US president Donald Trump following a report he may take a more targeted approach than previous stated.

“After a sluggish December, US stocks have kicked off the year in style, with tech and semiconductors stealing the spotlight,” noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.

He added there was also “tariff optimism despite mixed signals”.

The Washington Post said Trump’s aides were weighing plans to apply tariffs to goods only in certain critical sectors − a narrower definition than the president-elect previously proposed.

Trump, however, described the Post story as “just another example of Fake News”.

The report comes after Trump warned last year that he would slap huge levies on China, Canada and Mexico.

Ahead of him taking office on January 20, the US Defense Department on Tuesday added tech giant Tencent and battery manufacturer CATL to a list of companies it says are affiliated with Beijing’s military.

China accused Washington of “unjustified suppression”, while Tencent’s shares plummeted more than seven per cent in Hong Kong.

CATL stock sank 5.2 per cent.

Shares in US chip designer Nvidia had rallied Monday on a positive outlook, giving the company a market value of more than $3.6 trillion.

In trading on Tuesday, the euro strengthened against the dollar as official data showed eurozone inflation accelerated in December to 2.4 per cent.

It comes amid concern that Trump’s tariff plans along with pledges to slash taxes, remove regulations and crack down on immigration will reignite US inflation, putting pressure on the Fed to keep borrowing costs higher for longer.

Friday’s US non-farm payroll report is the next big marker for investors hoping for some idea about the Fed’s plans for rates after recently scaling back its forecasts for cuts in 2025.

- Key figures around 1100 GMT - Paris - CAC 40: UP 0.5 per cent at 7,485.93 points Frankfurt - DAX: UP 0.3 per cent at 20,276.48 London - FTSE 100: DOWN 0.2 per cent at 8,230.87 Tokyo - Nikkei 225: UP 2.0 per cent at 40,083.30 (close) Hong Kong - Hang Seng Index: DOWN 1.2 per cent at 19,447.58 (close) Shanghai - Composite: UP 0.7 per cent at 3,229.64 (close) New York - Dow: DOWN 0.1 per cent at 42,706.56 (close) Euro/dollar: UP at $1.0424 from $1.0388 on Monday Pound/dollar: UP at $1.2556 from $1.2518 Dollar/yen: UP at 157.76 yen from 157.64 yen Euro/pound: UP at 83.05 pence from 82.98 pence Brent North Sea Crude: UP 0.5 per cent at $76.67 per barrel West Texas Intermediate: UP 0.3 per cent at $73.77 per barrel dan-bcp/ajb/jxb S&P Global Ratings Nvidia Tencent INDEX CORP.

European shares held steady on Tuesday after inflation data matched expectations, while Asian shares rose as some investors hoped US President-elect Donald Trump would adopt less aggressive tariffs than previously thought.

Europe’s continent-wide STOXX 600 index was last up 0.1%, after rising 0.95% on Monday following a news report that said Trump may consider narrower tariffs, which caused shares of automakers to rally. Germany’s DAX was up 0.2% while Britain’s FTSE 100 fell 0.2%.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.2%. Japan’s Nikkei rose 2%, boosted by a rally in technology stocks. China’s CSI 300 index gained 0.7%.

China’s main stock exchanges asked some large mutual funds to restrict stock selling at the start of the year, three sources familiar with the matter said, as authorities sought to calm markets heading into a tricky period for the world’s second-largest economy.

In the United States, S&P 500 futures were flat and Nasdaq futures lost 0.1% after the underlying indexes rose on Monday to more than a one-week high, aided by tech companies.

The Washington Post reported on Monday that Trump aides were exploring tariff plans that would be applied to every country but only cover certain sectors deemed critical to national or economic security, in what would represent a marked softening from promises Trump had made during the 2024 presidential campaign.

While the news initially sent stocks rallying and the dollar tumbling, Trump’s subsequent denial reversed some of the US currency’s declines.

“No one really knows for sure what kind of tariffs or trade policies the Trump administration will implement,” said Khoon Goh, head of Asia research at ANZ. “It’s still possible that what the Washington Post reported is true. His officials and aides of course will go through and come up with various options, but ultimately it’s up to Trump to decide.”

Agencies