In European Equity Markets the pan-European Stoxx 600 closed up 0.4%. Utilities led the gains with a 2% rise, while oil and gas stocks fell 0.6% amid a sharp decline in crude prices. Galapagos NV saw its shares trade 5% higher, to the top of the Stoxx 600, after announcing that U.S. collaborator Gilead is to submit a new drug application to the U.S. Food and Drug Administration this year. British asset management company Jupiter fell 8% after news that star European fund manager Alexander Darwall will quit to launch his own investment boutique.

In Currency Markets the U.S. dollar fell from two-week highs on Tuesday, as optimism about easing trade tensions between the United States and China faded, even as U.S. President Donald Trump turned his attention to the European Union with threats of additional tariffs. The Australian dollar, meanwhile, led all gainers on Tuesday after the Reserve Bank of Australia cut interest rates, as expected, but signaled a more balanced outlook. The Australian dollar was the sole spot of strength in the currency market, rising 0.4% to $0.6995.

In Commodities Markets oil prices fell on Tuesday as concerns that the global economy could be slowing outweighed an agreement by OPEC and allies, including Russia, to extend supply cuts until next March. Brent crude futures were down 49 cents, or 0.75%, at $64.57 a barrel by 1340 GMT. U.S. crude futures for August were down 58 cents, or 0.98%, at $58.51 a barrel, after touching their highest in more than five weeks on Monday. The OPEC  Countries along with other top producers, including Russia, agreed on Tuesday to extend oil supply cuts until March 2020.

In US Equity Markets were flat on Tuesday, a day after a record-setting rally, as optimism sparked by the U.S.-China trade truce waned after Washington threatened tariffs on $4 billion of additional EU goods. Among stocks, Automatic Data Processing fell 4.2%, the most among S&P 500 companies, after market sources said brokerage Jefferies is re-offering 8 million of the company’s shares at a discount. Gilead Sciences Inc rose 1.30% after the drugmaker said it will submit a new drug application for its arthritis drug to the U.S. FDA this year.

In Bond Markets U.S. Treasury yields’s decline accelerated on Tuesday in step with their U.K. counterparts in the wake of comments on risks from Brexit and trade tensions from Bank of England Governor Mark Carney. Benchmark 10-year Treasury yields were down 4.40 basis points at 1.989%, while the yields on 10-year gilt yields were 8.50 basis points lower at 0.728%