Global Market Gains Amid Trump Trade Policy Uncertainty

World stocks rose as Donald Trump's return to the White House reignited market uncertainty about trade policy. While the dollar gained, the Canadian and Mexican currencies experienced volatility amid possible tariffs. Investors remain cautious despite Trump's measured tariff announcements, and global markets are responding accordingly.

World stocks increased on Tuesday following a dramatic drop, prompted by Donald Trump's White House return and the ensuing ambiguities in trade policy. The U.S. dollar rose, despite earlier declines, as markets grappled with Trump's proposed tariffs and their potential impact.

The Canadian dollar and Mexican peso faced significant pressure, responding to Trump's indication of 25% tariffs on neighboring countries by February 1. Investors found respite as Trump refrained from imposing extensive tariffs immediately, easing the rise in U.S. Treasury yields.

Europe and Asia's equities remained relatively stable amid these developments. Analysts caution against assuming a permanent reprieve from U.S. tariffs, highlighting that Trump's trade policies continue to play a decisive role in global market fluctuations.

(With inputs from agencies.)