Global stock markets and the U.S. dollar held firm on Tuesday as trade negotiations between the United States and China continued into a second day, raising investor hopes for easing tensions between the two economic superpowers. U.S. Commerce Secretary Howard Lutnick and President Trump both gave optimistic signals about the ongoing talks in London, contributing to market stability.

Major U.S. indices posted modest gains, with the Dow up 0.06%, the S&P 500 rising 0.16%, and the Nasdaq advancing 0.12%. World stocks hovered near record highs, while the dollar remained steady against major currencies.

Economists remain cautious, with expectations that many tariffs, particularly the 10% import levy, will remain in place. Meanwhile, in Europe, the STOXX 600 edged higher despite UBS shares falling 5.5% due to regulatory concerns. In Japan, policymakers discussed promoting domestic bond ownership as long-term yields stabilized.

Currency movements were mixed: the yen strengthened, the euro gained 0.2%, while the British pound dipped 0.2% after weak employment data. Concerns over the quality of U.S. deficit spending have contributed to broader unease about the dollar's long-term strength.

Investors are also closely watching upcoming U.S. inflation data (CPI and PPI) for signs of persistent price pressures. Any surprises could affect expectations for Federal Reserve rate cuts, though no change is expected at next week’s meeting.

Commodities responded positively, with oil prices rising on trade optimism and Brent crude reaching $67.30 per barrel. Gold also advanced 0.5%, signaling continued demand for safe-haven assets.