In Asian Equity Markets indices traded mostly lower on Tuesday, with greater China markets extending their declines as investor worries over Beijing’s trade relations with the U.S. soured sentiment in the region. China markets pulled back, extending the last session’s sharp declines. The Shanghai composite fell 1.27 percent after touching two-year lows in the last session and the Shenzhen composite pulled back by 1.36 percent. Elsewhere, Japan’s Nikkei 225 turned lower, declining 0.65 percent. Airlines and oil producers clung to gains, while most other sectors eased.

In Currency Markets the US dollar eased marginally against its peers on Tuesday, as the euro steadied after partners in Germany’s coalition settled a row over migration that had threatened to topple Chancellor Angela Merkel’s government. The euro was little changed at $1.1626 after shedding 0.45 percent overnight. The Chinese yuan extended its losses on the back of nervousness ahead of July 6, when U.S. tariffs on Chinese exports are due to take effect. The yuan retreated about 0.6 percent on Tuesday to its lowest since August 2017 versus the dollar.

In Commodities Markets oil prices climbed on Tuesday after Libya declared force majeure on some of its supplies, although an overall rise in OPEC output and an emerging slowdown in demand held back markets. Brent crude oil futures were at $77.71 per barrel, up 41 cents, or 0.5 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were up 57 cents, or 0.8 percent, at $74.51. OPEC’s June output was 32.32 million barrels per day (bpd), a Reuters survey showed on Monday, up 320,000 bpd from May. The June total is the highest since January 2018.

In US Equity Markets indices  ended higher on Monday after a choppy session, with gains in Apple and other technology stocks offsetting worries about an escalating trade war between Washington and its trading partners. The S&P 500  gained 0.31 percent to 2,726.71. The Nasdaq Composite added 0.76 percent to 7,567.69. Indices suffered steep losses at the start of the session, but reversed course later. Shares of casino companies fell as gambling revenue in the Chinese territory of Macau rose less than expected in June. Wynn Resorts fell 7.89 percent, while Las Vegas Sands declined 6.67 percent

In Bond Markets Japanese government bond prices dipped on Tuesday, weighed down by an overnight retreat by U.S. Treasuries, although a 10-year debt auction attracted ample investor demand and helped limit the losses. The five-year and 10-year JGB yields were half a basis point higher at minus 0.115 percent and 0.025 percent , respectively. The bid-to-cover ratio, a gauge of demand, at Tuesday’s 2.2 trillion yen ($19.85 billion) 10-year auction, was 4.37 – above the average ratio of 4.18 from the previous ten auctions.