In European Equity Markets the pan-European Stoxx 600 closed up 0.8 percent, with all major bourses and sectors bar utilities in positive territory. German DAX led the gains, closing up 1.1. percent. Basic resources stocks, with their heavy exposure to China, rallied in afternoon trade to close up nearly 2.7 percent. Anglo American, was the second best sectoral performer, rising in afternoon trade to close over 5 percent higher. BHP Billiton, Arcelormittal and Rio Tinto all finished Tuesday around 3 percent in the green. The autos sector also performed well, closing up 1.9 percent. Utilities was the only sector to close negatively, ending the day down 0.74 percent.

In Currency Markets the US dollar rose against the Japanese yen on Tuesday after Chinese President Xi Jinping’s promise to cut import tariffs eased concerns about a trade conflict between Washington and Beijing. The dollar was up 0.35 percent at 107.12 yen. Chinese President Xi Jinping on Tuesday promised to open the country’s economy further and lower import tariffs on products including cars, in a speech seen as conciliatory amid rising trade tensions between China and the United States. Meanwhile, the dollar was up 3.78 percent against the Russian ruble, its strongest since December 2016, as a sell-off of Russian assets, triggered by more U.S. sanctions, extended into Tuesday.

In Commodities Markets oil hit $70 a barrel on Tuesday, in its biggest two-day rally in nearly a month, as investors grew more confident that a brewing trade dispute between the United States and China may be resolved without causing harm to the global economy. Brent crude futures were last up $1.35 at $70.00 a barrel, while West Texas Intermediate crude futures rose $1.30 to $64.72 a barrel. The oil price has risen by 4.5 percent in the last two trading days to reach its highest since March 29 and is only 1.2 percent below the 2018 peak at $71.05 from late January. The American Petroleum Institute will publish storage data later on Tuesday.

In US Equity Markets main indexes hit session highs on Tuesday as investors concerns about rising U.S.-China trade tension receded after Chinese President Xi Jinping promised to cut import tariffs. Ten of the 11 major S&P sectors were higher, with the energy index adding more than 3 percent as oil broke above $70 a barrel. The biggest boost came from a 2.2 percent gain in the technology sector. The S&P 500 was up 1.68 percent, at 2,657.02 and the Nasdaq Composite was up 1.73 percent, at 7,070.86. Shares of Spectrum Pharma rose 22 percent after company provided positive data from lung cancer drug trial.

In Bond Markets U.S. Treasury yields on Tuesday were mostly higher after the latest data showed a pick-up in inflation last month in terms of producer prices, which rose more than expected. However, U.S. 30-year yields, which move inversely to prices, inched lower as the yield curve continued to flatten as investors priced-in interest rates hikes this year. In mid-morning trading, the U.S. 10-year yields were up slightly at 2.797 percent, from 2.789 percent late on Monday. U.S. 30-year yields, however, slipped to 3.015 percent , from Monday’s 3.017 percent.