In European Equity Markets stocks traded lower Tuesday as caution returned following a worldwide rally on the back of a “phase one” U.S.-China trade deal. The pan-European Stoxx 600 fell 0.6%. Oil and gas and utilities stocks bucked the trend to climb 0.8% and 0.65% respectively. NMC Health shares fell 34% on Tuesday after U.S. short-selling titan Muddy Waters announced it had shorted the stock, citing “serious doubts about the company’s financial statements, including its asset values, cash balance, reported profits, and reported debt levels.” Unilever shares dropped 6.8% by afternoon trade after the consumer goods giant cut its 2020 sales growth forecast.

In Currency Markets the Australian dollar fell to a weekly low on Tuesday after the central bank opened the door to another cut in interest rates as early as February and other currencies also weakened due to a fading in trade-related euphoria. In Britain, the pound tanked as Prime Minister Boris Johnson, embolded by election victory, put the risk of a hard Brexit back on the table, saying he would make extending the transition period beyond 2020 illegal. The Australian dollar lost 0.5% to $0.6844 after minutes of its December policy meeting showed the central bank’s board was concerned that wage growth was too weak to revive either inflation or consumption.

In Commodities Markets Oil rose further above $65 a barrel on Tuesday, supported by hopes that the U.S.-China trade deal will bolster oil demand in 2020 and the prospect of lower U.S. crude supplies. The “Phase One” agreement between the world’s two largest economies has been “absolutely completed”, Larry Kudlow, a top White House adviser, said on Monday, adding that U.S. exports to China will double under the deal. Brent crude, the global benchmark, rose 30 cents to $65.64 a barrel, while U.S. West Texas Intermediate crude added 37 cents to $60.58.

In US Equity Markets stocks paused after a four-day rally, but still hovered around record levels on Tuesday, while a fall in Boeing’s shares weighed on the Dow as the crisis surrounding the planemaker’s 737 MAX jet deepened. The S&P 500 edged to a record high for the fourth straight session and was set to build on its 27% gain this year, driven mainly by expectations of a U.S.-China trade deal, a dovish Federal Reserve and upbeat economic indicators. Netflix Inc rose 3.5% after the streaming service provider said its growth overseas is accelerating, on the back of its Asia-Pacific business.

In Bond Markets Euro zone bond yields fell on Tuesday, as the British government signalled it was ready to set up a Brexit cliff-edge in talks on a trade deal with Brussels, while a final agreement on the first phase of a Sino-U.S. trade deal had yet to emerge. British Prime Minister Boris Johnson, who was re-elected last week, said he would use his control of parliament to outlaw any extension to the transition period following the country’s expected exit from the European Union on Jan. 31. Most 10-year euro zone bond yields were 1 to 2 basis points lower , with Germany’s 10-year yield at -0.285%, far off a six-month high of -0.217%.