Markets see slight recovery following tariff collapse

The Euronext stock exchange in Dublin. 

Global stock markets saw a slight recovery on Tuesday despite concern among investors over further tariff developments in the US. 

Markets had been unsettled by US President Donald Trump's announcement of sweeping trade tariffs last week, stoking fears of a global recession. 

On Monday night, he threatened China with an additional 50% tariff, on top of the 34% tariff announced last week as well as the 20% tariff previously put in place, after Beijing implemented reciprocal tariffs on the US.

The Iseq Index of Irish shares rose over 4.1% by 2pm on Tuesday. This after it dropped over 5.5% on Monday morning before recovering over the course of the day ending just over 4% down compared to when trading started.

Uniphar, Kingspan, and Ryanair were the best performing shares on Euronext Dublin both up 5.1%, 4.8%, and 4.8%, respectively as of 2pm. While most other shares in the Iseq were recovering, PTSB and Glanbia were down 0.7% and 0.6% as of 2pm.

In Britain, their main indexes recovered from their lowest levels in more than a year on Tuesday, as investors look for any indication of Washington softening its stance on the aggressive tariffs that have roiled global markets over the last few days.

The blue-chip FTSE rose 2.44%, as of 2pm, after falling for four consecutive sessions. The domestically focused midcap index FTMC also gained 3.1%, after hitting its lowest point since November 2023 in the previous session.

European shares rose from 14-month lows on Tuesday after four straight sessions of heavy selling, although investors' mood remained sensitive to tariff-related developments.

The pan-European STOXX 600 was up 2.7% on Tuesday morning after shedding 12.1% in just the past four sessions as investors worried about a possible global recession triggered by the recent escalation in the trade war.

As of Monday's close, the index declined 17.9% from its all-time high hit on March 3.

Germany's benchmark GDAXI rose 2.5% after the index stopped short of confirming a bear market in the previous session.

The EU Commission has proposed counter-tariffs of 25% on a range of U.S. goods on Monday as the 27-member bloc struggles with tariffs on autos and metals already in place, and faces a 20% tariff on other products on Wednesday.

Japan's Nikkei share average closed 6% higher on Tuesday, recovering from an 18 months low hit in the previous session, as investors scooped up stocks, encouraged by signs of a recovery on Wall Street.

The Nikkei index climbed 6.03%, marking its sharpest daily percentage gain since August 6.

The broader Topix index also recorded a more than 6% gain.

Stock markets in the US will open for trading at 2.30pm Irish time.

Additional reporting Reuters