In Asian Equity Markets indices edged higher on Tuesday. The S&P/ASX 200 rose fractionally, as the sectors traded mixed. Elsewhere, mainland Chinese stocks were mixed in early trade. The Shanghai composite was fractionally lower, while the Shenzhen component added 0.22%. In Hong Kong, the Hang Seng index traded slightly higher. Japan’s Nikkei 225 rose 0.13% while the Topix index was 0.37% higher. South Korea’s Kospi gained 0.33%. Stocks in Taiwan are closed for trading on Tuesday due to a holiday.

In Currency Markets sterling wallowed near a more than two-year low on Tuesday on growing investor worries about a “no-deal Brexit” as rival British lawmakers fought for control over negotiations to leave the European Union. The euro fell to the lowest in more than two years as weak economic data from the EU underscored expectations for the European Central Bank to ease monetary policy at a meeting next week. Sterling traded at $1.2063, flat so far in Asian trading but close to the lowest in more than two years.

In Commodities Markets oil prices were mixed on Tuesday as the ongoing U.S.-China trade war cast a pall over markets, with soft South Korean data adding to concerns over emerging markets and a rise in OPEC output. U.S. crude was down 21 cents, or 0.4%, at $54.89 a barrel, while Brent was 5 cents higher at $58.71 a barrel. The United States this week imposed 15% tariffs on a variety of Chinese goods and China began to impose new duties on a $75 billion target list, deepening the trade war that has rumbled on for more than a year.

In US Equity Markets trading was closed due to Labor Day holiday.

In Bond Markets short-dated euro zone government bonds outperformed on Monday, with Italy leading the way as political uncertainty eased and speculation grew that the European Central Bank would deliver a bigger interest rate cut next week than previously anticipated. Italian bond yields fell 4 to 8 basis points, having risen on Friday after 5-Star leader Luigi di Maio said his party would only enter a coalition if the PD agreed to a string of policy demands. Germany’s two-year bond yield was flat at -0.919% and within sight of record lows from early-2017.