In European Equity Markets the pan-European Stoxx 600 closed 0.32 percent higher, with most major bourses and sectors in the black. Media shares rose 0.32 percent on earnings. Vivendi rose 3.97 percent after reporting first-half results. The company said it could sell up to half of its Universal Music Group assets. Leonardo led the gains, up by 10.6 percent on strong second-quarter results. The Swedish firm Hexagon also jumped 5.39 percent after reporting second-quarter numbers above forecasts.

In Currency Markets the British pound fell below $1.31 on Tuesday as the dollar rebounded and investors prepared for a Bank of England policy meeting this week at which markets are now pricing in a near-90 percent chance of a 25 basis points rate rise. Sterling has recuperated somewhat in recent sessions, moving away from the 10-month low it touched earlier in July on growing worries that Britain was headed for a cliff-edge departure from the European Union. Against the dollar the pound fell 0.2 percent to $1.3089. Sterling traded flat versus the euro at 89.220 pence per euro.

In Commodities Markets oil fell on Tuesday and Brent futures were on track for their largest monthly decline in two years after a survey showed OPEC’s output hit a 2018 high in July, reigniting concern about supply swamping demand. The Reuters survey released on Monday showed that OPEC increased production in July by 70,000 barrels per day (bpd) to 32.64 million bpd, a high for the year. October Brent crude futures fell 91 cents to $74.64 a barrel. The September contract expires later on Tuesday. U.S. crude futures fell $1.28 to $68.85.

In US Equity Markets stocks rose on Tuesday as technology stocks rebounded and a report said the United States and China were trying to restart negotiations to defuse a trade war between world’s two largest economies. The S&P 500 was up 0.32 percent, at 2,811.51 and the Nasdaq Composite rose 0.29 percent, at 7,652.19. Microsoft rose 0.5 percent and was the biggest boost to the S&P 500 and the Nasdaq. Chipotle Mexican Grill fell 4.9 percent after the burrito chain operator shut a restaurant in Ohio following reports of customers getting severely ill.

In Bond Markets U.S. Treasury yields ticked lower on Tuesday after the Bank of Japan announced it would continue to pursue its ultra-loose monetary policy, though they mostly rebounded thanks to a modest increase in U.S. inflation. The 10-year U.S. government note last yielded 2.96 percent, down less than a basis point from Monday. The 30-year yield was down 2 basis points, at 3.08 percent. The BOJ’s meeting is the first in a series this week, followed by Federal Reserve on Tuesday and Wednesday, and the Bank of England on Thursday.