Global stock markets held a steady tone on Tuesday as major exchanges digested mixed signals from economic and geopolitical fronts.

After a holiday close in parts of Asia, European equities remained resilient while U.S. futures pointed to a cautious open.

Investors expressed caution ahead of key data due later in the week that could influence inflation and growth expectations.

Technology and value stocks saw selective buying despite lingering concerns over risk sentiment.

Traders also noted that geopolitical developments, including ongoing negotiations between the U.S. and Iran, were keeping risk premiums in place.

Asian markets were thinly traded as many regional exchanges observed Lunar New Year holidays, limiting broader market momentum.

Japan’s Nikkei slipped on light volume, while other bourses remained closed, underscoring how holiday schedules are shaping market participation.

Commodities such as crude oil showed modest movements, with traders reacting to news on global diplomatic talks that may affect supply risk.

Currency markets also reflected a balanced stance as the U.S. dollar and yen responded to cross-asset flows.

Despite the quiet trading environment, analysts said market drivers remain unchanged, corporate earnings, macroeconomic data releases and central bank narratives will be key near-term catalysts.

Equity benchmarks in the U.S. and Europe also weighed investor positioning ahead of earnings reports and economic releases later this week.

Safe-haven assets showed limited strength, suggesting that risk appetite remains fragile but not overly defensive.

In commodity markets, oil prices edged higher on geopolitical headlines tied to U.S.–Iran nuclear talks slated to begin soon, while precious metals slipped amid firmer currency flows.

Mixed signals in energy and metals reflect the broader tug-of-war between demand expectations and currency dynamics.

Investors said that upcoming U.S. economic data, including GDP and inflation prints, may be decisive for broad market direction.

Market participants cautioned that thinning liquidity due to holidays could amplify volatility when major U.S. data is released.

Traders highlighted that technical levels in equities and bond markets will be tested as the week progresses, with sentiment likely to follow macro releases and policy expectations more closely.

Source: Reuters.