In European Equity Markets shares fell on Tuesday as an escalation in U.S.-China trade tensions and Brexit worries along with disappointing corporate news dented sentiment. All major sectors in Europe were in the red, and while most of the big markets in the region slid more than 1%, losses in London’s FTSE 100 were limited to 0.8% as its exporters benefited from a battered pound. Shares of London Stock Exchange Group fell 5.8% after Hong Kong’s bourse withdrew its $39 billion bid. Germany’s export-reliant DAX fell 1.1%,

In Currency Markets the US dollar fell against the safe-haven Japanese yen on Tuesday amid renewed trade-related worries and as an unexpected drop in U.S. producer inflation supported the case for the Federal Reserve room to cut interest rates again later this month. Against the yen, which tends to benefit during geopolitical or financial stress as Japan is the world’s biggest creditor nation, the dollar fell 0.32% to 106.94 yen. The pound was 0.69% lower against the greenback.

In Commodities Markets oil prices slid on Tuesday as Washington’s blacklisting of more Chinese companies dampened hopes for a trade deal between the two countries, though unrest in Iraq and Ecuador lent some support to crude prices. Both Brent crude and West Texas Intermediate (WTI) crude had risen by more than 1% earlier in the day. Brent was down 8 cents, or 0.1%, at $58.27 a barrel and WTI was down 17 cents, or 0.3%, at $52.58. Investors are treading cautiously before U.S.-China trade talks in Washington on Thursday.

In US Equity Markets stocks fell on Tuesday as optimism faded over the outcome of trade talks after a report the Trump administration was moving ahead with efforts to limit capital flows to China and the inclusion of Chinese firms to a blacklist. This pressured U.S. suppliers. Intel Corp, Nvidia Corp, Western Digital and Seagate Technology fell between 1.7% and 4%, while Ambarella Inc fell 9%. The Philadelphia Semiconductor index declined 2.6%, while technology stocks fell 1.2%. The S&P 500 was down 1.21%, at 2,903.33. The Nasdaq Composite fell 1.18%, at 7,862.27.

In Bond Markets Portugal’s 10-year bond yields hit five-week lows on Tuesday on expectations that the Socialist party would swiftly form a new government after its election victory at the weekend. Portugal’s 10-year bond yield fell to as low as 0.111% , dropping below its Spanish equivalent, which traded at 0.13%. It was down 2 basis points on the day. Portugal’s 10-year bond yield gap over top-rated Germany narrowed to as little as 65 bps, within sight of July’s lows .