Global equities advanced on Tuesday as oil prices retreated and U.S. Treasury yields declined, while gold reached its highest level in three months. Brent crude futures fell more than 3% to trade below $90 a barrel, extending losses from the prior session.
U.S. 10-year Treasury yields dropped as much as 8 basis points to their lowest level in two months, following a strong indirect bid at a $70 billion 2-year note auction. The decline in yields coincided with a broad-based rally in European and U.S. equities, with the S&P 500 and Dow Jones Industrial Average each up 0.3%, while the Nasdaq gained 0.7%. Seven of the 11 S&P 500 sectors advanced, led by a 1% gain in technology, while energy shares fell 1.7%.
Gold futures climbed to a three-month high, supported by the drop in yields and broader risk aversion in commodities. In currency markets, the U.S. dollar weakened against the Chinese yuan, with the USD/CNY pair falling to 6.7195, its lowest since February 2023. Bitcoin traded above $80,000 during the session.
European economic data continued to outperform expectations, with Deutsche Bank raising its 2026 real GDP forecast for Germany to 1.0% from 0.5%. The Citi economic surprises index for Europe reached its highest level in three and a half years, while the gap between European and U.S. surprise indices widened to its greatest margin since early 2023. German GDP expanded at an annualized rate of nearly 1.5% over the past three quarters.
In geopolitical developments, Canada announced retaliatory tariffs on U.S. goods totaling $20 billion, while criticism mounted over China’s exchange rate policy. U.S. Treasury Secretary Scott Bessent’s decision to expand long bond buybacks drew criticism from investor Stanley Druckenmiller, who described the move as a mistake.
