Global Markets Surge as US-India Trade Deal Reinvigorates Investor Confidence

Global stock markets made a significant comeback on Tuesday, reversing a three-day losing streak as investor confidence was bolstered by a U.S.-India trade agreement and a notable recovery in gold prices after a downturn. The Australian dollar emerged as a highlight in the currency markets, buoyed by a rate hike from the central bank, marking it as one of the few developed economies following this monetary policy shift.

The sentiment uplift was widespread, seeing a drop in market volatility and recovery in other assets like silver and copper, which had previously suffered. Indian markets were energized by the announcement of tariff reductions on Indian goods by U.S. President Donald Trump, combined with India's commitments to halt Russian oil imports and lower trade barriers.

Gold prices experienced a remarkable surge, nearly 6%, marking the largest single-day rise since 2008, while silver prices also shot up significantly. Investors are advised to remain cautious, although some are using the opportunity to diversify geographically and across sectors, trying to broaden their investment strategies beyond AI and technology sectors. The currency markets saw varied movements as the Australian dollar gained strength, while the Japanese yen experienced slight depreciation.