Global markets have been gripped by a sense of risk aversion ever since U.S. President Donald Trump triggered a tit-for-tat tariff war between the U.S. and its trade partners, which analysts have said could stoke inflationary pressures and trigger an economic slowdown.

President Donald Trump backed down from an extraordinary trade war escalation Tuesday that had threatened a massive surge in Canadian steel and aluminum tariffs and new tariffs on Canadian electricity.

After President Trump’s global tariffs on steel and aluminum took effect, the European Union and Canada announced billions of dollars in levies on American goods. The stock market recovered some recent losses as investors weighed positive news on inflation against continued uncertainty.