Markets rebound after sharp losses but analysts eye further falls

Asian and European stocks rebounded after a disastrous few days in which analysts warned US President Donald Trump’s “Liberation Day” tariffs would spark a global recession.

Shares in Hong Kong, Sydney, and Tokyo all closed higher on Tuesday, while European markets opened up, though analysts warned that gains would likely be short-lived and any positivity was misplaced.

“Trump has given little signs of scaling back protectionism, and there is a risk that markets are again erring on the side of optimism,” ING economists argued. A Financial Times columnist went further, arguing that a brief selloff of US Treasury bonds, otherwise a haven asset, pointed to shares having further to fall: “Markets seem likely to remain in meltdown.”