In European Equity Markets the pan-European Stoxx 600 was down 0.17%, retail stocks each shedding 0.8% to lead losses as most sectors and major bourses traded in the red. Shares of communications company SES fell 4.75% by early afternoon after it announced that CFO Andrew Browne would step down. French telecoms operator Iliad suffered a 6% decline after first-half results showed it had lost 127,000 subscribers as rivals gained market share. Danish hospital equipment maker Ambu climbed 6.5% by afternoon deals to top the European blue chip index.

In Currency Markets sterling fell to a three-year low below $1.20 on Tuesday, as Prime Minister Boris Johnson’s implicit threat to lawmakers to back him on Brexit or face an election sent investors scrambling to dump British assets. The pound, which has lost 20% of its value since Britain voted to leave the European Union in 2016, fell as low as $1.1959 before recovering. Against the euro the pound fell to a two-week low of 91.47 pence, then recovered to 90.95 pence. Traders in London said heightened uncertainty was panicking investors, as the battle over Brexit reaches a crescendo this week.

In Commodities Markets oil prices fell on Tuesday, with U.S. crude futures down more than 3%, weighed by manufacturing data that raised concerns about a weakening global economy, while the U.S.-China trade dispute continued to drag on investor sentiment. U.S. West Texas Intermediate (WTI) crude futures fell $1.91, or 3.5%, to $53.19 a barrel. It fell to a session low of $52.84 a barrel, the lowest since Aug. 9. Brent crude futures fell $1.15, or 2%, to $57.51 a barrel. It earlier sank to $57.23 a barrel, also the weakest since Aug. 9.

In US Equity Markets stocks fell on Tuesday after data showed U.S. manufacturing sector contracted for the first time since 2016 in August, adding to fears that a protracted U.S.-China trade war could tip the world’s largest economy into recession. The S&P 500 was down 1.06%, at 2,895.52 and the Nasdaq Composite was down 1.11%, at 7,874.77. U.S. casino operators felt the brunt of slowing economic growth in China as gambling hub Macau posted an 8.6% decline in August casino revenue, sending shares of Wynn Resorts Ltd and Las Vegas Sands Corp  down between 4%.

In Bond Markets Italy’s 10-year bond yield fell to a new record lows on Tuesday on optimism that 5-Star members would approve a coalition deal with the Democratic Party, just as safe-haven German Bund yields fell to record lows on renewed political uncertainty in Britain. Italy’s 10-year bond yield fell below 0.90% for the first time, last down 6 basis points on the day, while the gap over safer German Bund yields tightened to around 161 bps. UK 10-year gilt yields fell to a record low of 0.34%, set for their biggest two-day fall since early July.