Morning Bid: Trump cuts India deal, Australia hikes

A look at the day ahead in European and global markets from Tom Westbrook

Trade took a steadier tone in the Asia session on Tuesday, with metals prices stabilising and stocks generally recovering from a gold-and-silver-led wipeout on Monday.

Rebounds in Tokyo and Seoul were sharp and Indian shares cheered a deal U.S. President Donald Trump announced on Truth Social to lower tariffs on Indian goods in return for India quitting purchases of Russian oil.

As with other bilateral deals, there were few solid details and none around the timing but it was enough to lift the rupee by more than 1%. [FRX/][EMRG/FRX]

Australia’s currency traded more than 1% higher, too, after the central bank joined Japan as the only developed-world countries lifting interest rates.

The 25-basis point hike was mostly expected by markets and comes with inflation running above target and the labour market tight. Investors have ramped up bets on a follow-up hike in May, which is priced at about 75%.

Ahead, the ECB’s lending survey can help investors gauge credit demand in Europe and earnings from Alphabet and Amazon later in the week anchor the U.S. calendar.

Elsewhere, market talk of a tax increase on gaming had Chinese internet stocks wobbly, while silver and gold were trying to find their footing. [.HK][GOL/]

Mining shares were accordingly higher in Australia, with rare earth miners also helped by Trump announcing plans for a strategic stockpile of critical minerals, backed by $10 billion in seed funding from the U.S. Export-Import Bank.

Elon Musk said on Monday that SpaceX has acquired his artificial-intelligence startup xAI in a record-setting deal that unifies Musk’s AI and space ambitions.

Key developments that could influence markets on Tuesday:

– ECB bank lending survey

– Fed Bowman speaks

– U.S. earnings: PayPal, Pfizer, Marathon and, after market close, AMD, Amcor and Mondelez

(Editing by Sam Holmes)