Market Sentiment Shaken as Economic Uncertainty Looms

Global markets showed cautious optimism amid indicators of a weakening U.S. economy and geopolitical tensions. Expectations are high for Nvidia's earnings due to its role in AI investment. US-China trade tensions and Trump's foreign policy further influence market dynamics.

Global shares experienced a cautious uptick on Tuesday as signs of a softening U.S. economy emerged, just ahead of important earnings announcements, notably from Nvidia. The euro, meanwhile, retreated slightly from recent one-month highs post-Germany's election results.

Investor anxiety intensified following U.S. President Donald Trump's directive limiting Chinese investments in strategic sectors, a move that underscores ongoing trade tensions. This development comes as Nvidia prepares to report earnings that could sway investor sentiment significantly, especially given the company's prominence in artificial intelligence.

Despite a fragile market sentiment, highlighted by geopolitical strife over Ukraine and looming Fed rate cuts, some investors remain optimistic due to a robust earnings season. However, market fluctuations continue as traders grapple with evolving uncertainty in both economic and geopolitical landscapes.

(With inputs from agencies.)