Financial markets returned to a recovery in trading on Tuesday, with global stocks gaining ground and cryptocurrencies, especially Bitcoin, rising above $90,000 again.
Meanwhile, gold prices began to plunge towards $3,300 again after hitting its latest all-time high of $3,500.
This shows renewed investor confidence as investors shift from safe assets to higher-yielding investments.
This is driven by several recent developments in the market that are still related to United States President (US) Donald Trump.
In a press conference, Trump announced that negotiations with China were going smoothly and signaled that an agreement would be reached between the two parties.
He added that the tariffs imposed on China would not be as high as 145%, but the tariff rate would not be zero.
In addition, Trump also made a 'u-turn' from his previous threat, by announcing that he did not intend to fire Federal Reserve (Fed) Chairman Jerome Powell despite being disappointed with the still high interest rates.
However, he expects Powell to be more active in his views towards lowering interest rates in the future.
This latest news is seen as temporarily easing the tension in the market, changing the current market sentiment to 'risk-on'.
However, if the situation changes again with Trump's changing views, investors need to be prepared for the risk of uncertainty that will hit again.
The market's focus today (Wednesday) will be directed to the European and US PMI data to assess the current health of the economy based on the readings of the manufacturing and services sectors.
