Investors bet on Trump tariff concessions as retaliation threats rattle markets

• China shares rose while Europe and the U.S. slipped as investors bet—or at least hoped—that U.S. President Donald Trump would step back from his most recent aggressive tariff threats. S&P futures were off 0.4% while Hong Kong rose 1.5%.

Are trade tensions rising or falling? Unable to answer that question, investors let markets slip in Europe and the U.S. on Tuesday morning, bumping China.

U.S. President Donald Trump’s recent doubling of steel and aluminum tariffs...