In European Equity Markets the pan-European Stoxx 600 closed 0.2%, having earlier hit its highest since May 2015. Travel and leisure stocks jumped 0.6% to lead gains, as most sectors fell below the flatline. Satellite operator SES fell 22% after the chairman of the U.S. Federal Communications Commission backed a public auction to free up spectrum for the C-band for 5G, according to Reuters. British technology company Halma saw its shares rise 8.7% after reporting interim results, while Homeserve added 4% after posting a rise in first-half profits. Easyjet stock rose 3.6% after the budget carrier reported annual results at the upper end of its guidance.

In Currency Markets the U.S. dollar was little-changed against a basket of currencies on Tuesday as continued lack of clarity on the fate of the U.S.-China trade talks kept investors cautious. The dollar index, which compares the dollar against six major currencies, was up 0.01%. The index has shed 0.6% over the last three sessions. Against the Japanese yen, the dollar was 0.12% weaker on the day. Elsewhere, the Australian dollar fell after minutes from a Reserve Bank of Australia policy meeting showed central bankers considered cutting rates this month. The Aussie however recovered to trade up 0.19% against the greenback.

In Commodities Markets oil fell about 2% on Tuesday on concerns about excess global crude supply and limited progress toward resolving a U.S.-China trade dispute that has clouded the outlook for oil demand. Brent crude futures fell $1.08, or 1.7%, to $61.36 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $1.32, or 2.3%, to $55.73 a barrel. Brent has rallied about 15% this year, supported by a pact by the Organization of the Petroleum Exporting Countries and its allies, including Russia – a group known as OPEC+ – to cut combined oil output by 1.2 million barrels per day from Jan.1.

In US Equity Markets the S&P 500 and the Dow retreated slightly after touching record highs on Tuesday, hit by dour forecasts from retailers Home Depot and Kohl’s. Shares of the largest U.S. home improvement chain fell 5.3% and were the top drag on the two main indexes after the company cut its 2019 sales forecast for the second time this year as its online push was not delivering as expected. Also souring the mood was Kohl’s Corp, which fell 17.8% as the department store operator slashed its annual profit forecast after falling short of quarterly comparable sales and earnings estimates.

In Bond Markets Southern European bond yields rose on Tuesday, continuing to underperform higher-rated debt markets in the euro area as risk assets globally came under selling pressure. Borrowing costs in Germany, France and the Netherlands were all little changed on the day with focus remaining on U.S.-China trade talks. But yields in Italy, Spain and Portugal all headed up as the session wore on, reflecting a slightly more cautious tone in world equity markets. Italy’s 10-year bond yield was up 5 basis points at 1.35% , heading back towards more than two-month highs hit last week.