In European Equity Markets stocks closed lower Tuesday amid renewed fears of a euro zone break-up risk in Italy and political turmoil in Spain. The pan-European Stoxx 600 closed 1.37 percent lower, with all major bourses and every sector apart from oil in negative territory. Among national indexes, Italy’s FTSE MIB fell 2.65 percent, amid renewed political pain. Meanwhile, Spain’s IBEX 35 was also off by almost 2.5 percent following news the country’s Prime Minister, Mariano Rajoy, is due to face a confidence vote over his leadership on Friday. Europe’s banking index led the losses Tuesday, off almost 3.2 percent, on pace for its worst day since August 2, 2016.

In Currency Markets the US dollar rose on Tuesday to a 10-month high against the euro after a sell-off in Italy’s debt market drove investors to dump the single currency. A deepening political crisis in Italy, the euro zone’s third-biggest economy, provoked selling of Italian assets and the euro that was reminiscent of the euro zone debt crisis of 2010-2012. The single currency on Tuesday slipped below $1.16 for the first time since November 2017 to hit a 10-month low of $1.1506 and weakened significantly against the safe-haven Swiss franc and Japanese yen. The dollar index was up half a percent on the day at 95.025, hitting a 6-1/2 month high.

In Commodities Markets brent crude oil rose on Tuesday, paring losses triggered by expectations that Saudi Arabia and Russia could pump more crude to compensate for a potential supply shortfall. International crude benchmark Brent futures were up 68 cents at $75.98 a barrel, while U.S. crude futures fell 65 cents to $67.23. Brent it’s trading at its largest premium over U.S. futures in more than three years, meaning U.S. exports are rapidly becoming far more competitive globally than those from northern Europe, Russia or parts of the Middle East. The Brent price has fallen nearly 7 percent since hitting a 2014 high above $80 on May 22.

In US Equity Markets stocks fell on Tuesday, with bank stocks among the hardest hit, as a deepening political crisis in Italy triggered rush to safe-haven assets. The S&P 500 was down 0.90 percent, at 2,696.72 and the Nasdaq Composite was down 0.35 percent, at 7,407.65. Shares of energy companies were led lower by a near 2 percent. Exxon Mobil fell 0.4 percent, while Chevron was down 0.3 percent. Halliburton slipped 1.2 percent. The only gainers were shares of consumer staples, utilities, real estate companies. NXP Semiconductors NV rose 0.6 percent on a report on Monday that China is ready to approve the Qualcomm NXP deal if the United States lifts ban on ZTE Corp.

In Bond Markets U.S. Treasury yields fell to multi-week lows on Tuesday, pressured by declines in the European government bond market after a deepening political crisis in Italy fueled a flight to safe-haven assets. U.S. 10-year note and 30-year bond yields, which move inversely to prices, fell to seven-week lows, while those on two-year notes slid to six-week troughs. The fall in yields came after Italy’s president appointed a former International Monetary Fund official as interim prime minister, who has to plan for fresh elections and pass a budget. A rush to safe havens briefly pushed Germany’s 10-year bond yield to 0.19 percent, its lowest in more than a year.