In European Equity Markets indices  finished Tuesday’s trade on a relatively negative note, as caution continued to linger following the U.S.-led market sell-off last week. The pan-European Stoxx 600 ended the session down 0.6 percent, with most sectors moving into the red by the close. On the bourses front, the French CAC 40 slipped 0.6 percent, while Germany’s DAX fell 0.7 percent. The U.K.’s FTSE 100 fluctuated around the flatline, before closing down 0.13 percent at the close. Telecoms fell 1.10 percent as a sector by the close as earnings continue to disappoint. Shares of Telenet fell 5.46 percent on dividend concerns after the Belgian operator posted its 2017 results. Inmarsat slipped 5.67 percent after HSBC cut its price target on the stock.

In Currency Markets the Japanese yen rose to a five-month high on Tuesday on the back of broad-based selling of the dollar and speculation the Bank of Japan could be close to dialing back record levels of monetary stimulus. The yen has gained 1.5 percent against the dollar this month, benefiting last week from a rush by investors into currencies deemed safer amid the rout in equity markets. But while risk appetite has recovered this week, investors have continued to sell dollars and buy yen. The dollar was down more than half a percent against a basket of six currencies, reversing some of its gains last week, when it enjoyed its best performance since 2016. Elsewhere, the euro rose to a daily high of $1.2371, up 0.65 percent, as gains in global equity markets encouraged traders to sell the dollar and tiptoe back into riskier assets.

In Commodities Markets oil fell to its lowest in two months on Tuesday, giving up early gains after a forecasting agency estimated world crude supply could overtake demand this year, potentially undermining producer efforts to curb supply. The Paris-based International Energy Agency raised its forecast for oil demand growth in 2018 to 1.4 million barrels per day, from a previous projection of 1.3 million bpd. However, rapidly rising output, particularly in the United States, could well outweigh any pick-up in demand and begin to push up global oil inventories, which are now within sight of their five-year average. Brent crude futures fell 72 cents to $61.87 a barrel, while U.S. West Texas Intermediate crude futures declined 78 cents to $58.51. The private AP Institute is due to publish crude inventory estimates later today.

In US Equity Markets indexes fell for the first time in three sessions on Tuesday as caution crept in ahead of crucial data on inflation, a root cause of the recent sell-off. Nine of the 11 major S&P indexes were lower, led by losses in the healthcare and financial indexes. The S&P 500 was down 0.33 percent, at 2,647.36 and the Nasdaq Composite was trading flat, at 6,975.34. The tech-heavy Nasdaq was still clinging to a 1.22 percent gain for the year. Shares of Under Armour rose more than 18 percent after the sportswear maker reported quarterly revenue that beat analysts’ estimates. AmerisourceBergen jumped about 8 percent after the Wall Street Journal reported Walgreens made a takeover approach for the drug distributor. Walgreens rose marginally.

In Bond Markets German government bonds were in demand on Tuesday as recent multi-year highs on yields on either side of the Atlantic proved attractive for some investors. Yields have risen across major developed markets on a recovering global economy and on expectations that central banks will tighten policy faster than previously thought. Germany’s 10-year government bond, the benchmark for the bloc, was down 1.5 basis points at 0.74 percent, off 2-1/2 year highs of 0.81 percent hit last week. Italian bond yields rose after the auction, with 10-year yields touching six-week highs at 2.08 percent. Portuguese bond yields climbed around 7 bps to their highest in around six weeks at 1.99 percent.