In Asian Equity Markets stocks were cautiously higher on Tuesday after a late revival on Wall street, though global growth fears stoked by China’s stringent COVID-19 curbs and an expected streak of aggressive Federal Reserve tightening sapped risk appetite. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.8 percent, helped by China’s blue chip index adding 0.33 percent, after its worst day in two years on Monday. Hong Kong’s benchmark Hang Seng Index also bounced 0.6 percent. Japan’s Nikkei stock index rose 0.57 percent.

In Currency Markets the dollar climbed to around a two-year high against the euro and an 18-month high versus the pound as fears about the economic impact of China’s COVID-19 lockdowns and an aggressive pace of U.S. rate hikes sent investors scrambling for safety. China’s offshore yuan was steadier in early trading, however, at 6.5770 per dollar after the People’s Bank of China said late on Monday it would cut the amount of foreign exchange banks must hold as reserves. The dollar index was at 101.58, after jumping 0.58 percent on Monday and hitting a two-year peak of 101.86.

In US Equity Markets stocks rose on Monday, with the Nasdaq ending sharply higher after Twitter agreed to be bought by billionaire Elon Musk, sparking a late day rally in growth stocks. The Dow rose 0.7 percent to end at 34,049.46 points, while the S&P 500 gained 0.57 percent to 4,296.12. The Nasdaq Composite climbed 1.29 percent to 13,004.85. Twitter ended up 5.6 percent after announcing it would be bought by Musk in a deal that will shift control of the social media giant to the world’s richest person. Oil majors Chevron Corp and ExxonMobil declined more than 2 percent.

In Commodities Markets oil lost about 4 percent on Monday to its lowest in two weeks on growing worries about the global energy demand outlook due to prolonged COVID-19 lockdowns in Shanghai and potential increases in U.S. interest rates. Brent futures fell 4.1 percent, to settle at $102.32 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 3.5 percent, to settle at $98.54. Spot gold fell 1 percent to $1,909.61 per ounce. Palladium slid 3.4 percent to $2,293.33 per ounce, while platinum fell 2 percent to $911.69 after touching its lowest level since December 2021. Silver fell 2.2 percent.

In European Equity Markets commodity stocks fell 6 percent on Monday, leading sharp declines across stock indexes as worries about an economic slowdown in China and rapid U.S. interest rate hikes overshadowed relief from French Presidential election results. As investors flocked to the safety of bonds, the continent-wide STOXX 600 index fell 1.8 percent. France’s CAC 40 lost 2 percent, caught in a wider risk-off move, even as Sunday’s election results showed pro-EU centrist Emmanuel Macron beating far-right challenger Marine Le Pen with a solid margin.

In Bond Markets U.S. Treasury yields edged down on Monday as fears over China’s COVID-19 outbreaks spooked investors, leading to a partial reversal of last week’s moves, when concerns over aggressive U.S. interest rate hikes pushed yields higher. Yields on three-year, five-year, and seven-year Treasury notes all declined about 10 basis points. Benchmark 10-year yields were down at 2.8121 percent from their 2.906 percent close on Friday. The short end of the U.S. yield curve was also affected, with two-year paper down to a yield of 2.6194 percent from Friday’s close of 2.715 percent.