Global stock markets edged higher on Tuesday, buoyed by strong gains in energy shares after oil prices climbed sharply on renewed security concerns in the Red Sea. Investor sentiment stayed cautious, however, as markets braced for a crucial round of earnings from major US technology companies.
Brent crude jumped 3.5 percent to $94.22 a barrel, its highest level since early June, after two Saudi oil tankers bound for Asia reportedly reversed course in the Red Sea in response to threats from Yemen’s Iran-backed Houthi movement. The move revived fears over global energy supplies and dampened hopes that geopolitical tensions in the region would ease quickly.
On the trade front, President Donald Trump announced that generic drugs imported into the United States will face a 0 percent tariff for two years starting 1 August. The rate will then climb to 100 percent for one year before rising to 200 percent. Earlier in the week, Trump also imposed a 50 percent tariff on selected Canadian goods, adding to the persistent uncertainty around trade policy.
The rise in oil prices lifted energy stocks, helping the pan-European STOXX 600 index gain 0.6 percent, while the MSCI All-World Index advanced 0.1 percent.
US equity futures, by contrast, pointed lower as investors waited on results from leading technology firms. Nasdaq futures fell 0.6 percent, reflecting pressure on growth stocks, while S&P 500 futures slipped 0.2 percent ahead of the closely watched corporate earnings.
