Global markets rebound on trade deal hope; Sensex up 1,089.19 pts

World markets won a reprieve on Tuesday after three days of heavy selling that wiped trillions of dollars off the value of shares, but caution prevailed with focus on whether Washington might be willing to negotiate on some of its aggressive tariffs.

Asia stocks bounced off 1-1/2 year lows, European shares rallied over 1.5% and US stock futures pointed to a positive open for Wall Street where shares had fallen to their lowest in over a year on Monday before steadying.

US 10-year Treasury yields also steadied after posting their biggest one-day jump in a year on Monday and the dollar, which has taken a beating from the tariff turmoil, remained weak against other major currencies.

“Markets could continue to be extremely volatile.” Japan’s blue-chip Nikkei stock index closed 6% higher, with Treasury Secretary Scott Bessent tasked with leading trade negotiations with Tokyo, viewed as a positive sign.

In Europe, shares rose from 14-month lows and markets in London, Paris and Frankfurt were up more than 1% each, while oil was a touch firmer but kept Monday’s four-year lows in sight.

Global oil benchmark Brent crude climbed 0.22 per cent to USD 64.35 a barrel.

“Importantly, a little ray of sunshine is starting to emerge that gives hope that the US is genuinely open to trade negotiations, (with) the most significant being Japan with Treasury Secretary Bessent,” said Tapas Strickland, head of market economics at National Australia Bank.

Sensex recouped 1,089 points after across-the-board.

Snapping its three-day decline, the 30-share BSE Sensex jumped 1,089.18 points or 1.49 per cent to settle at 74,227.08 with 29 of its components ending in the green. During the day, it climbed 1,721.49 points or 2.35 per cent to 74,859.39.

The NSE Nifty surged 374.25 points or 1.69 per cent to 22,535.85, snapping the three-day losing run. Intra-day, the benchmark soared 535.6 points or 2.41 per cent to 22,697.20.

Benchmark indices Sensex and Nifty had logged their worst single-day decline in 10 months on Monday.