In Asian Equity Markets indices were mixed on Tuesday morning after trade tensions between the U.S. and China escalated. Australia’s ASX 200 fell 0.19 percent as the energy sector continued its decline, falling 1.33 percent. Japan’s Nikkei 225 rose 0.99 percent and the Topix index was up 0.95 percent. In South Korea, the Kospi recovered to trade slightly higher as blue chip stocks traded mixed. Shares of Samsung Electronics extended gains to trade 1 percent up, while Korea Electric Power Corporation was down 1.34 percent.

In Currency Markets the US dollar was slightly higher on Tuesday and China’s yuan fell as global markets braced for Beijing’s response to new U.S. tariffs on Chinese goods. The dollar was 0.1 percent higher at 111.94 yen. The Australian dollar, seen as a proxy to China-related trades as well as a barometer of broader risk sentiment, was nearly flat at $0.7176 , having climbed off a low of $0.7144 hit earlier in the session. The pound fell 0.1 percent to $1.3147. Sterling had gained 0.7 percent on Monday, hitting a six-week high of $1.3165, helped by reports of progress on the Irish border question.

In Commodities Markets oil markets fell on Tuesday as the latest escalation in the Sino-U.S. trade war clouded the outlook for demand, although concerns over tightening supply offered prices some support. Brent crude futures had declined 27 cents, or 0.35 percent, to $77.78 per barrel. U.S. West Texas Intermediate (WTI) crude fell 32 cents, or 0.46 percent, to $68.59 per barrel. U.S. President Donald Trump on Monday said he would impose 10 percent U.S. tariffs on about $200 billion worth of Chinese imports.

In US Equity Markets stocks fell on Monday, led by declines in technology and consumer discretionary stocks as investors looked to President Donald Trump’s announcement regarding tariffs on $200 billion of Chinese imports. Consumer discretionary and technology were the biggest percentage losers on the S&P 500, falling 1.3 percent and 1.4 percent, respectively. Amazon.com led consumer discretionary stocks lower, falling 3.2 percent. The S&P 500 lost 0.56 percent, to 2,888.8 and the Nasdaq Composite fell 1.43 percent, to 7,895.79.

In Bond Markets U.S. Treasury yields rose across the board on Monday on growing expectations the Federal Reserve could raise interest rates a few more times this year after recent data showed wages spiking last month, elevating concerns about inflation. Yields on the 10-year touched 3.022 percent, the highest level since late May. U.S. 30-year yields also hit a four-month peak of 3.159 percent, while 2-year yields soared to 2.799 percent, the strongest level in 10 years.