In European Equity Markets stocks sensitive to the price of oil fell on Tuesday, with the pan-European benchmark ending lower after a strong start to the session. Euro zone blue chips closed 0.4 percent lower and the regional STOXX index fell 0.6 percent, retreating from a two-week high and giving up most of the gains made in the previous session. Europe’s oil and gas companies fell more than 2 percent with Royal Dutch Shell down 2.3 percent and BP down 2.6 percent after oil prices hit seven-month lows . Mining shares fell more than 3 percent. Britain’s FTSE 100 index hit by its heavy weighting in commodities stocks. Germany’s benchmark DAX index touched a fresh record high before retreating 0.6 percent.

In Currency Markets the dollar reached a one-month high on Tuesday against a basket of currencies on the view the Federal Reserve may raise interest rates once more this year, while sterling fell after the Bank of England’s head threw cold water on the notion it was close to raising rates. The dollar index, tracking the unit against other key world currencies, rose 0.31 percent, with the euro down 0.22 percent to $1.1124.Sterling was last trading at $1.261, down 0.96 percent on the day. Bank of England Governor Mark Carney doused speculation that he might soon back higher interest rates, telling bankers on Tuesday that he first wanted to see how the economy coped with Brexit talks in coming months.

In Commodities Markets  oil prices fell to seven-month lows on Tuesday after news of increases in supply by several key producers, a trend that has undermined attempts by OPEC and others to support the market through reduced output.  Brent was trading around $45.81, down $1.10. The U.S. crude futures contract for July fell $1.27 to $42.93, its lowest since Nov. 14, before recovering to around $43.10. Spot gold traded flat at $1,242.40 per ounce, after earlier touching a low of $1,241 an ounce, the weakest since May 17. Silver fell 0.3 percent to $16.41, having earlier touched $16.37, its weakest since May 12. Spot palladium traded up 0.4 at $865.50 per ounce, and platinum fell 0.5 percent to $921.50.

In US Equity Markets  stocks opened lower on Tuesday, falling from record levels, as oil prices fell 2.5 percent to seven-month lows and a recovery in technology stocks lost momentum. The Dow Jones Industrial Average was down 0.07 percent, at 21,513.04, the S&P 500 was down 0.26 percent, at 2,447.03. The Nasdaq Composite was down 0.24 percent, at 6,224.30. Oil majors Chevron and Exxon were down about 1 percent, with the S&P energy sector’s 1.3 percent fall leading the decliners.  Lennar rose 3.2 percent after the No. 2 U.S. homebuilder reported a higher-than-expected quarterly profit. Chipotle fell 4.3 percent after the burrito chain said its operating costs in the second quarter will be slightly higher than the first quarter.

In Bond Markets the U.S. Treasury yield curve flattened to its lowest levels since December 2007 as more hawkish Federal Reserve officials led intermediate-dated notes to underperform long-term bonds, which are being supported by falling inflation. Benchmark 10-year notes were last up 3/32 in price to yield 2.18 percent, down from 2.19 percent late on Monday. Thirty-year bond yields, which are most influenced by inflation expectations, by contrast have tumbled to 2.76 percent from 2.80 percent after the Fed’s rate hike last week.