In European Equity Markets the pan-European Stoxx 600 closed just below the flatline. Auto and retail stocks led the losses with 1% declines, while basic resources climbed 0.7%. Nissan Chief Executive Hiroto Saikawa said Tuesday that the carmaker will postpone talks with French partner Renault on deepening their alliance, instead focusing on its own recovery. Renault shares traded 1.6% lower. French telecoms provider Iliad fell 3.5% after Berenberg downgraded the company’s stock from “buy” to “hold.”

In Currency Markets the U.S. dollar fell to a three-month low against the euro and dropped to its weakest against the Japanese yen since early January as the prospect of monetary easing by the Federal Reserve knocked demand for the U.S. currency. The euro hit a three-month high of $1.1412, having gained 2.0% from a two-week low of $1.1181 touched a week ago. It last stood at $1.1382, down 0.1% on the day. The dollar fell 0.4% to as low as 106.78, having only fallen below 107 yen per dollar in the January flash crash and then last back in April 2018.

In Commodities Markets oil prices ticked up on Tuesday after the U.S. market open on anticipation that data due later would show crude stocks there declined, erasing earlier losses linked to concerns over waning demand. Benchmark Brent crude futures were up 32 cents at $65.18 a barrel. U.S. crude futures rose 24 cents to $58.14 a barrel. Sending a bullish signal, a preliminary Reuters poll showed on Monday that U.S. crude oil inventories likely fell for a second consecutive week last week.

In US Equity Markets stocks opened flat on Tuesday, as rising tensions in the Middle East and signs that U.S.-China trade talks may generate little progress kept investors on the sidelines, ahead of a handful of speeches by Federal Reserve officials later in the day. Among stocks, AbbVie Inc said it would acquire Botox-maker Allergan Plc in a cash-and-stock deal for about $63 billion, sending its shares 10.1% lower. Shares of Allergan jumped 28.5%. Lennar Corp rose 4.1% after the No. 2 U.S. homebuilder reported a 35.8% rise in quarterly profit, selling more as mortgage rates fell.

In Bond Markets benchmark yields fell close to the widely watched 2% level on Tuesday before Federal Reserve Chairman Jerome Powell is expected to deliver dovish comments on Fed policy, and on concerns about rising tensions between the U.S. and Iran. Benchmark 10-year notes were last up 5/32 in price to yield 2.004%, down from 2.019% on Monday. The yields fell to 1.974% on Thursday, the lowest since November 2016. The Treasury Department will sell $40 billion in two-year notes on Tuesday, the first sale of $113 billion in coupon-bearing supply this week.