In European Equity Markets the pan-European Stoxx 600 closed down 0.88%, paring gains earlier in the session. The majority of sectors ended in the red, although basic resources was up around 1.3%. Diasorin shares leaped 10.8% after the Italian diagnostic specialist announced the impending launch of a new test for coronavirus. By late afternoon shares were 5% higher. Banks including Commerzbank, Societe Generale, BNP Paribas, Standard Chartered and Deutsche Bank all jumped more than 7% during the day on Tuesday before paring gains.

In Currency Markets sterling fell on Tuesday, unwinding most of its gains notched up in the previous session, thanks to a broad dollar rebound on expectations that the White House will unveil a fiscal stimulus package to limit the economic damage wrought by the coronavirus. Sterling extended losses and was down 1.5% against the greenback at $1.2930 on Tuesday, after hitting a more than month-high of $1.32 the previous day. Analysts said the pound could face further selling pressure as markets expect the central bank to cut interest rates.

In Commodities Markets oil prices jumped by more than 7% on Tuesday, bouncing from the biggest rout in nearly 30 years a day earlier, as the possibility of economic stimulus encouraged buying, and Russia signaled that it may yet hold talks with OPEC about cooperation on output cuts. On Monday, U.S. President Donald Trump pledged “major” steps to gird the U.S. economy against the impact of the spreading coronavirus outbreak. Japan’s government said it planned to spend more than $4 billion in a second package of steps to cope with the virus.

In US Equity Markets indices rebounded on Tuesday as investors pinned their hopes on policy easing by major central banks after global markets plummeted in the previous session on fears of a coronavirus-driven recession. The S&P 500 was up 0.52%, at 2,760.75. The Nasdaq Composite fell 1.01%, at 8,030.70. Rate-sensitive financial stocks firmed 1.2% as U.S. Treasury yields bounced off record lows. The utilities and consumer staples — commonly considered bond proxies — were among the biggest decliners, after showing resilience in Monday’s rout.

In Bond Markets U.S. Treasury yields on Tuesday rose from all-time lows as global oil and stock markets rebounded after huge losses on Monday fueled by an oil price war and growing concerns over the economic impact of the coronavirus. The 10-year bond yield was last at 0.629%, well above its new record low of 0.318%. Thirty-year Treasury yields, which fell to a record low of 0.70% on Monday, last traded at 1.103%.