A look at the day ahead in European and global markets from Ankur Banerjee

With less than 24 hours left until U.S. President Donald Trump unveils his reciprocal tariff plans to a nervous world, market moves have slowed to a crawl as investors hunker down and minimise their risk ahead of a likely volatile reaction.

In the meantime, only gold prices are showing signs of life. Asian stocks were choppy but holding to narrow ranges, after Wall Street managed a firmer end to a similarly choppy session. Futures point to a subdued open in Europe.

For weeks now, investors have been focused on what Trump has deemed "Liberation Day", which is expected to bring dramatic new duties against allies and foes alike. A White House Rose Garden announcement is scheduled for 2000 GMT on Wednesday.

The threat of retaliation from other countries suggests that the period of uncertainty is far from over.

And whatever form Trump's trade plan ultimately takes, tariffs don't all act the same.

The duties are set to take effect immediately, suggesting little room for negotiation and the possibility of wide-ranging responses from affected countries. In short, expect potentially sharp moves in the markets.

The devil will be in the details of the trade plan after a media report suggested duties could be raised by about 20% on imports from nearly every country, rather than targeting certain countries or products.

Trump has already imposed tariffs on aluminium, steel and autos, while increasing duties on all goods from China. That has rattled markets as fears mount that a full-blown trade war could trigger a sharp slowdown in the global economy.

In these uncertain times, gold prices have been on a tear, perched at a record high above $3,000 per ounce. The yellow metal is up 19% this year and that's after climbing 27% in 2024, its strongest annual performance in more than a decade.

Key developments that could influence markets on Wednesday:

- Trump's reciprocal tariff announcement at 2000 GMT

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