Global financial markets showed signs of recovery on Tuesday as investors digested recent developments in U.S. trade policy and shifts in global bond markets. President Trump's decision to delay the imposition of a 50% tariff on European imports until July 9 calmed investor nerves, leading to gains across major stock indices.

European shares rose 0.4%, with UK markets climbing 1% after a holiday, and U.S. stock futures pointed to solid gains following the long weekend. Analysts suggest that markets are increasingly discounting the immediate impact of Trump’s tariff threats, reflecting a growing “fear fatigue.”

In fixed-income markets, U.S. 30-year Treasury yields dropped 8 basis points to 4.96%, marking the largest one-day decline since mid-April. This movement aligned with a sharp rally in Japanese government bonds, driven by speculation that Tokyo might cut issuance of long-dated debt due to rising yield concerns.

Currency markets remained volatile. The dollar edged higher but is still on track for its fifth consecutive monthly decline, its worst run since 2017. Analysts cite concerns over erratic U.S. policy, rising deficits, and external debt as contributing to long-term weakness. The euro and yen both slipped slightly against the dollar.

Gold prices dipped 1% to $3,307.69 an ounce as the dollar strengthened, despite hitting record highs earlier in the year amid its growing appeal as an alternative safe haven. Oil prices remained flat, with Brent and WTI each down 0.4% ahead of an expected OPEC+ decision on production increases.

Investor focus now shifts to Nvidia’s earnings report, expected to show a 66% revenue surge, along with upcoming speeches from Federal Reserve officials and Friday’s release of the U.S. core PCE inflation data. These will provide further clues on the trajectory of U.S. interest rates and broader economic direction.