In Asian Equity Markets trade developments returned to focus during Asian trade on Wednesday, with major markets in the region falling following the release of a list of an additional $200 billion in Chinese goods on which the U.S. is considering imposing tariffs. China markets fell on the back of the news, with the Shanghai composite falling 2.31 percent in morning trade. Meanwhile, Japan’s Nikkei 225 fell 1.74 percent, with losses steepening through the day as trade-sensitive stocks, such as automakers, mostly fell.

In Currency Markets the US dollar rose near an 11-month high against the Chinese yuan and the Australian dollar fell after the U.S. said it would slap tariffs on an extra $200 billion of imports from China, sharply escalating tensions between the world’s two biggest economies. The news threw U.S.-China trade war worries back into the spotlight just days after Washington imposed 25 percent tariffs on $34 billion of Chinese imports, and Beijing responded immediately with matching tariffs on the same amount of U.S. exports to China.

In Commodities Markets oil prices fell on Wednesday, with Brent falling by more than $1 at one point, after U.S. President Donald Trump threatened to levy new trade tariffs on China. Brent crude futures were down 75 cents, or 1 percent, at $78.11 a barrel, having fallen as low as $77.60. U.S. crude was down 55 cents, or 0.7 percent, at $73.56. The specter of tariffs on a further $200 billion worth of Chinese goods sent commodities lower along with stock markets, with trade tensions between the world’s two biggest economies intensifying.

In US Equity Markets the S&P 500 rose on Tuesday to post its highest closing level since Feb. 1, the day before the market began a sharp extended decline, as strong results from PepsiCo boosted optimism about the earnings season. The consumer staples index climbed 1.3 percent and provided the biggest lift to the S&P 500, driven by PepsiCo, which gained 4.8 percent, while Procter & Gamble rose 2.5 percent and Coca-Cola was up 1.3 percent. The Nasdaq Composite added 0.04 percent, to 7,759.20. The S&P 500 gained 0.35 percent, to 2,793.84.

In Bond Markets yields on shorter-dated Treasuries hit session highs following a weak auction of 3-year notes that left the yield curve at its flattest in over a decade. The auction for $33 billion in 3-year notes in the afternoon had the lowest bid-to-cover ratio since April 2009, and primary dealers took more than half of the 3-year supply. An auction of $22 billion in 10-year notes is scheduled for Wednesday and $14 billion in 30-year bonds will be offered on Thursday. Benchmark U.S 10-year notes yielded 2.871 percent, up from 2.860 percent late Monday.