In Asian Equity Markets indices on Tuesday, with China markets lagging the region as investors weighed an escalating trade dispute between the U.S. and China. Japan’s Nikkei 225 edged down by 0.52 percent, but was off its intraday low, as major sectors came under pressure. Greater China markets under-performed their regional peers. The Shanghai composite fell 1.45 percent and the smaller Shenzhen composite lost 0.53 percent. Hang Seng Index declined 1.28 percent. The properties and construction index led losses in the early going, falling by 2.59 percent

In Currency Markets the US dollar slipped against the yen in Asian trade on Tuesday, hovering near a two-week low, as worries about an intensifying fight between the United States and its trade partners continued to slash risk appetites. Although the dollar briefly pared some of its losses, it slipped back to 109.43 yen, down 0.3 percent on the day and near the two-week low of 109.365 touched on Monday. The euro edged up 0.1 percent in Asian trade to $1.1717, extending its recovery from its 11-month low of $1.1508 touched on Thursday.

In Commodities Markets oil prices inched up on Tuesday on uncertainty over Libyan oil exports, although plans by producer cartel OPEC to raise output continued to drag. Brent crude futures, the international benchmark for oil prices, were at $74.81 per barrel, up 8 cents, or 0.1 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $68.24 a barrel, up 16 cents, or 0.22 percent. Traders said prices were mostly driven up by uncertainty around oil exports by Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC).

In US Equity Markets an escalating trade dispute between the United States and other leading economies battered U.S. stocks on Monday, handing the S&P 500 and Nasdaq their steepest losses in more than two months. The S&P 500 lost 1.37 percent, to 2,717.07 and the Nasdaq Composite fell 2.09 percent, to 7,532.01. FANG stocks were lower after having hit record intraday highs last week. Campbell Soup Co was the biggest percentage gainer on the S&P 500, rising 9.4 percent after a New York Post report that Kraft Heinz Co was considering buying the company.

In Bond Markets the U.S. Treasury yield curve flattened to its lowest level in over 10 years on Monday as concerns about trade wars and divisions within the euro zone boosted demand for longer-dated safe-haven debt. The yield curve between 2-year and 10-year notes flattened to 33 basis points, the lowest level since 2007. The U.S. Treasury will sell $100 billion in new coupon-bearing supply this week, including $34 billion in two-year notes on Tuesday, $36 billion in five-year notes on Wednesday and $30 billion in seven-year notes on Thursday.