Finance
Morning Bid: Trump cuts India deal, Australia hikes
Published by Global Banking and Finance Review
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
Quick Summary
Trump's tariff deal with India and Australia's rate hike influence global markets, with currencies and stocks reacting positively.
Trump Announces Tariff Deal with India as Australia Raises Rates
Market Reactions to Economic Developments
A look at the day ahead in European and global markets from Tom Westbrook
Impact of Trump's Deal on India
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.
Australia's Interest Rate Increase
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.
Global Market Trends
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)
Key Takeaways
- •Trump announces a tariff deal with India.
- •Australia raises interest rates by 25 basis points.
- •Global markets react to economic developments.
- •Indian rupee and Australian dollar see gains.
- •Strategic minerals stockpile announced by Trump.
Frequently Asked Questions about Morning Bid: Trump cuts India deal, Australia hikes
1What are interest rates?
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the principal amount.
2What is the role of the central bank?
A central bank manages a country's currency, money supply, and interest rates, aiming to ensure economic stability and growth.
3What is market volatility?
Market volatility refers to the degree of variation in trading prices over time, indicating the level of uncertainty or risk in the market.
