The Bank of Japan's deputy governor, Shinichi Uchida, has spared excessive volatility by stating that the BoJ will put brakes on interest rate hikes during unstable market conditions. This goes against what the governor, Kazuo Ueda, said last week after they surprisingly raised rates that made carry trades expensive, ensuing panic selling to cover their debt. Uchida stressed that they need to keep things as they are for now because markets are all over the place. He pointed out that a stronger yen and wild stock market swings would affect their decisions. When Uchida said this, it made the dollar jump against the yen and restored Japanese stocks. Some experts think this means the Bank of Japan might hold off on more rate hikes, wondering if they can really raise rates much if they're always watching how the market reacts.

EQUITY

Global markets saw a broad rebound on Tuesday, recovering from Monday's sharp sell-off, along with a VIX at the last Friday level. The Bank of Japan and positive sentiment from Federal Reserve officials' comments played a crucial role in calming markets. However, some tech companies, such as Super Micro Computer and Airbnb, fell after being hit by poor earnings reports. All major S&P 500 sectors ended in positive territory, with real estate and financials leading the gains.

GOLD

Gold prices have been mixed and largely flat, finding support at $2380 and rebounding slightly. The precious metal has been in a sell-off along with other asset classes on Monday as investors shifted towards bonds, contrary to gold's traditional role as a safe haven, instead serving as liquidity. While some buyers are supporting the price, there's hesitation to push it higher, and increased flows into gold exchange-traded funds have been noted.

OIL
Crude rebounded slightly, as the market showed signs of tightness, supply concerns, and a general rebound in risk appetite across financial markets. The situation in Libya, where the largest oil field is going through lesser production capacity, and ongoing tensions in the Middle East are contributing to supply concerns. The EIA has also revised down its global crude consumption estimate for 2025 to 104.5 million barrels per day, although it expects prices to reach $85–$90 per barrel by year-end.

CURRENCY

The U.S. dollar has been recovering from earlier sell-offs, rising to 103.32, moving away from the seven-month low of 102.15 it touched on Monday. Traders have adjusted their expectations for Federal Reserve rate cuts, now pricing in about 105 basis points of easing by year-end. Other major currencies are mixed with the euro easing, while sterling edged up, though still near a five-week low. The Australian dollar strengthened after the central bank ruled out rate cuts for the year.