Global Markets Rise on Tariffs Aftermath; Defense Stocks Boosted by German Spending Plan

Stock markets rebounded from Tuesday’s sharp losses after U.S. Commerce Secretary Howard Lutnick said the administration would “probably” announce a deal to reduce tariffs on Canada and Mexico on Wednesday. Still, the dollar continued to sell off.

Eurozone bonds and the euro moved sharply higher after Germany proposed to relax fiscal rules to allow higher defense spending.