In Asian Equity Markets stocks were mostly up on Tuesday morning, with investors remaining cautious about whether central banks can hike interest rates to curb inflation without impacting economic growth. Oil gained after the European Union (EU) backed a push to ban some Russian oil. China’s Shanghai Composite was up 0.35 percent while the Shenzhen Component inched down 0.02 percent. Hong Kong’s Hang Seng Index was up 0.37 percent. Japan’s Nikkei 225 225 fell inched up 0.07 percent. South Korea’s KOSPI edged up 0.11 percent and in Australia, the ASX 200 was down 0.41 percent.

In Currency Markets the euro gave back some of its recent gains on Tuesday, but was still set for its best month in a year as markets reposition in anticipation of interest rate increases in Europe and the possibility of a slower pace of U.S. rate hikes. The euro was at $1.0745, down 0.3 percent, having hit a five-week high of $1.0786 overnight, as German inflation rose to its highest level in nearly half a century in May on the back of rising energy and food prices. Sterling was at $1.263 and set for a monthly gain of 0.5 percent versus the dollar, its first monthly rise in 2022. The yen was at 128.15 per dollar.

In U.S., Equity Markets were closed in observance of Memorial Day

In Commodities Markets oil prices rose on Tuesday after EU agreed to slash oil imports from Russia by the end of 2022, fuelling worries of a tighter market already strained for supply amid rising demand ahead of peak U.S. and European summer driving season. Brent crude futures for July gained 33 cents to $122 a barrel. U.S. WTI crude futures were trading at $117.31 a barrel, up $2.24 from Friday’s close. Spot gold edged up 0.1 percent to $1,854.49 per ounce. Spot silver fell 0.6 percent to $21.96 per ounce, platinum rose 0.2 percent to $955.66 and palladium fell 1.2 percent to $2,038.03.

In European Equity Markets stocks scaled over three-week highs on Monday as new stimulus in China helped carry on last week’s optimism, while investors looked for more economic data this week, including German inflation. The pan-European STOXX 600 index rose 0.6 percent with broad-based gains led by technology stocks. Telecom Italia jumped 3.7 percent after the company and Italian state investor CDP signed a preliminary agreement to combine the phone group’s fixed network assets with those of state-owned broadband rival Open Fiber.

In Bond Markets Euro zone government bond yields jumped on Monday after preliminary data showed inflation rising more than expected while risk appetite grew across financial markets. Germany’s 10-year government bond yield rose to an almost two-week high of 1.072 percent and was last up 9 basis points at 1.048 percent. Italy’s 10-year bond yield rose by as many as 13.5 bps to an almost one-week high of 3.035 percent. The spread between Italian and German 10-year yields earlier widened by 6 bps to the day’s high of 197.2 bps.