In Asian Equity Markets stocks edged lower on Tuesday on concerns new coronavirus outbreaks in the region could undercut an economic recovery even as robust momentum in the United States prompts the Federal Reserve to contemplate a quicker exit from accommodative policy. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.11 percent lower. Australian and Japanese stocks took the brunt of early losses, with the ASX/200 index down 0.76 percent and the Nikkei falling 0.91 percent. The South Korean market was 0.39 percent lower, and Chinese stocks were also down 1.06 percent.

In Currency Markets the dollar hovered below a two-month high versus major counterparts on Tuesday, with traders largely sidelined ahead of a closely watched U.S. jobs report, which could sway the timing of an exit from Federal Reserve stimulus. The dollar bought 110.620 yen, hanging below a nearly 13-month high of 111.110 reached last week. The euro was at $1.19210, edging back toward the 2-1/2-month low of $1.8470 touched on June 18. Elsewhere, sterling fell back toward a two-month low, waekening 0.1 percent to $1.38645.

In US Equity Markets the Nasdaq and S&P 500 touched all-time highs on Monday, fueled by tech stocks as investors expect a robust earnings season while interest rates remain low. The Dow fell 0.44 percent, to close at 34,283.27. The S&P 500 rose 0.23 percent, to 4,290.61, while the Nasdaq Composite added 0.98 percent, to 14,500.51. Facebook rose over 4 percent as a U.S. judge granted the company’s motion to dismiss a Federal Trade Commission lawsuit. The social media giant finished Monday with over $1 trillion in market capitalization.

In Commodities Markets oil prices fell on Monday after hitting more than 2-1/2 year highs early in the session, hurt by the spike in COVID-19 cases in Asia ahead of this weeks OPEC+ meeting. Brent crude settled down 1.97 percent, at $74.68 a barrel. U.S. crude was last down down 1.51 percent, at $72.93 per barrel. Spot gold was steady at $1,779.70 per ounce and U.S. gold futures settled up 0.2 percent at $1,780.70. Elsewhere, silver rose 0.1 percent to $26.09 per ounce, platinum slid 1.4 percent to $1,095.70, and palladium gained 1.6 percent to $2,679.92.

In European Equity Markets stocks ended lower on Monday, with travel stocks leading losses on concerns over bans on British tourists, while a spike in Asian COVID-19 infections hit crude prices and saw energy stocks decline more than 2 percent. The pan-European STOXX 600 ended 0.6 percent lower, with the travel and leisure index down 4.4 percent to a one-month low. Germany’s DAX index ended 0.3 percent lower, while British blue-chip stocks shed 0.9 percent. Energy stocks fell 2.3 percent, with oil prices falling as a spike in Asian infections of the Delta variant threatened to dent demand.

In Bond Markets U.S. Treasury yields fell on Monday as the market prepared for the release of June employment data later in the week to gauge the strength of the economic recovery from the coronavirus pandemic. The benchmark 10-year yield fell 5.4 basis points at 1.4816 percent.  Last week, it notched its largest weekly gain since March, but has remained below 1.6 percent since early June. The two-year Treasury yield was 1.4 basis points lower at 0.2563 percent. Yield curves flattened, with the gap between 5- and 30-year yields last shrinking by 2.32 basis points at 120.15 basis points.