Global Markets Stabilize as Investors Weigh Geopolitical Risks and Economic Data

Gold prices neared a record high amid Middle East tensions and U.S. rate cut expectations, while oil prices steadied after a recent surge. European stocks gained, influenced by Japan's late rally, and BHP's strong profits bolstered global sentiment. Investors are keenly watching Nvidia's earnings and U.S. inflation data for market direction.

Gold prices approached a record peak as geopolitical risks and U.S. interest rate expectations drove investors towards safe assets. Oil prices leveled off after a significant surge, and European stocks opened higher, supported by a late rally in Japan's Nikkei index and strong profits from BHP.

Tensions in the Middle East, especially between Israel and Hezbollah, along with fears of a Libyan oil field shutdown, initially spiked oil prices. However, by Tuesday, oil prices had dipped slightly. Investors are also preparing for potential U.S. interest rate cuts following Federal Reserve chair Jerome Powell's comments.

The dollar index is just off a one-year low, reflecting faster rate cut bets, with the euro and pound gaining ground. A key inflation measure and Nvidia's upcoming earnings report are pivotal for market sentiment, possibly impacting the ongoing AI-driven rally. Meanwhile, Canada followed the U.S. and EU in imposing tariffs on Chinese imports, further affecting global market dynamics.

(With inputs from agencies.)