In European Equity Markets indices finished Tuesday’s session in the red, as investors across the globe continued to show concern over the possibility of a trade war between the U.S. and China. The pan-European Stoxx 600 ended 0.7 percent down, well off its session lows. Basic resources was the worst performing sector Tuesday, off 2.47 percent by the close.  The U.K.’s FTSE 100 fell 0.36 percent, despite weakness from British miners, while France’s CAC 40 fell 1.10 percent and Germany’s DAX slipped 1.22 percent.

In Currency Markets the US dollar, yen and Swiss franc rose on Tuesday as traders piled into perceived less risky currencies after U.S. President Donald Trump threatened to slap more tariffs on China, fanning a trade dispute between the world’s two biggest economies. The yen climbed 0.5 percent at 109.95 yen per dollar, while it advanced 1 percent versus the euro to 127.09 yen, its strongest in over two weeks. The Swiss franc increased 0.6 percent against the euro at 1.1495 franc and was marginally higher versus the greenback at 0.9948 franc.

In Commodities Markets oil fell on Tuesday ahead of a possible increase in OPEC crude supply, and as an escalating trade dispute between the United States and China unleashed sharp selloffs in many global markets. Brent crude futures eased 60 cents, or 0.8 percent, to $74.74 a barrel, while U.S. West Texas Intermediate crude futures fell $1.01, or 1.6 percent, to $64.84 a barrel. On Friday, the Organization of the Petroleum Exporting Countries (OPEC) and its allies are set to meet in Vienna, where they are expected to update their 2017 supply withholding agreement.

In US Equity Markets stocks fell and the Dow erased its gains for the year on Tuesday, as a sharp escalation in U.S.-China trade dispute jolted the markets and triggered a rush to safer assets. The S&P 500 was down 0.74 percent, at 2,753.22 and the Nasdaq Composite declined 0.97 percent, at 7,671.66. Financials index declined 0.43 percent as big banks weighed.  Chip-makers, which depend on China for a large portion of their revenue, also slipped, with Intel down 1.6 percent.

In Bond Markets Italian government bond yields rose across the curve on Tuesday, as investors rushed to buy safer assets such as German debt amid a rise in trade tensions between the United States and China. Ten-year yields rose about five bps to above 2.6 percent. Italian yields remain well below the recent highs hit before the formation of a coalition government but two-year yields jumped by around 10 basis points to a high of 0.66 percent. German 10-year yields, meanwhile, fell 3.5 bps.