In Asian Equity Markets indices fell on Tuesday as investors remained cautious amid rising global tensions. The Greater China markets were in negative territory in early trade after seeing strong gains over the last two sessions. Hong Kong’s Hang Seng index fell 1.18 percent while the Shanghai composite shed 0.42 percent. Over in South Korea, the Kospi declined by more than 2 percent in the morning session, touching lows not seen since March 2017. In Japan, the Nikkei 225 was down 1.73 percent while the Topix index fell 1.7 percent.

In Currency Markets the Japanese yen, a safe haven in uncertain times, firmed against the dollar on Tuesday, as the euro and sterling suffered due to doubts over Italy’s budget spending and over British Prime Minister Theresa May’s future with Brexit talks stalled. The dollar weakened 0.21 in Asian trade to trade at 112.55 yen, gaining as risk-shy investors retreated from Asia’s main share markets. The sterling traded flat at $1.2960 on Tuesday, having lost 0.83 percent on Monday, its steepest fall in percentage terms since Sept. 21.

In Commodities Markets oil prices fell on Tuesday after Saudi Arabia pledged to play a “responsible role” in energy markets, although sentiment remained nervous in the run-up to U.S. sanctions against Iran’s crude exports that start next month.  Front-month Brent crude oil futures were at $79.52 a barrel at 0318 GMT, down 31 cents, or 0.4 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $69.16 a barrel, falling 20 cents, or 0.3 percent, from their last settlement.

In US Equity Markets the S&P 500 and Dow traded lower on Monday, as early gains tracking a rally in China market faded with oil and financial stocks pushing the indexes lower. But a near 2 percent gain for Amazon and Apple at the start of a big week for technology earnings, helped the Nasdaq gain and lifted the S&P technology sector more than 1 percent. Intel gained 1.2 percent after Nomura upgraded the stock to “buy”, according to a trader. The S&P 500 was down 0.35 percent, at 2,758.12 and the Nasdaq Composite rose 0.40 percent, at 7,478.82.

In Bond Markets longer-dated U.S. Treasury prices edged higher on Monday. The Treasury Department will auction $38 billion in two-year notes on Tuesday, $39 billion in five-year notes on Wednesday and $31 billion in seven-year notes on Thursday. Two-year note yields rose to their highest level in a decade earlier on Monday and the U.S. Treasury yield curve was the flattest in more than two weeks ahead of $108 billion in short- and intermediate-dated supply. This week’s economic focus is Friday’s reading of gross domestic product for the third quarter.