In European Equity Markets the pan-European Stoxx 600 closed 0.2 percent lower with most sectors struggling to make gains. Retail, Basic Resources, and Telecoms were among the worst performers. In the retail world, earnings were at the fore. WM Morrison fell 4.5 percent after reporting lower sales growth in the last quarter. The Berlin-based fashion retailer Zalando registered its slowest sales rate since it was launched 10 years ago. Shares fell 8.4 percent as a result. Swiss recruitment firm Adecco and German postal firm Deutsche Post were the best performing stocks.

In Currency Markets sterling erased earlier losses and headed back towards the day’s highs in volatile trading on Tuesday on growing hopes of a Brexit deal breakthrough after a cabinet meeting. Against the dollar, the pound hit a two-week high at $1.3090. The US dollar was essentially unchanged on Tuesday as Americans headed to the polls, as its moves were limited by investor caution about the U.S. midterm elections and any fallout for the world’s largest economy. The Democratic Party is expected to win control of the U.S. House of Representatives, with Republicans likely to retain their majority in the Senate.

In Commodities Markets oil prices fell on Tuesday, with U.S. crude futures sliding to a seven-month low a day after Washington granted sanction waivers to top buyers of Iranian oil, as Iran said it had so far been able to sell as much oil as it needs to sell. Brent crude futures fell 96 cents, or 1.3 percent, to $72.21 a barrel. The global benchmark hit a session low of $71.85 a barrel, lowest since Aug. 20. U.S. West Texas Intermediate (WTI) crude futures fell 82 cents, or 1.3 percent, to $62.28 a barrel. The session low was $61.96 a barrel, its weakest since April 9.

In US Equity Markets stocks ticked higher in thin trading on Tuesday, supported by strong earnings and a rebound in technology stocks from a two-day selloff, while investors braced for the outcome of U.S. midterm elections. The S&P 500 was up 0.39 percent, at 2,748.96 and the Nasdaq Composite rose 0.75 percent, at 7,383.84. Mylan NV jumped 12.9 percent after the drug-maker beat analysts’ estimates for third-quarter profit. Booking Holdings gained 6.3 percent after the online travel agency forecast fourth-quarter profit above estimates.

In Bond Markets Italian bond yields rose on Tuesday after EU officials raised the threat of sanctions against Italy if Rome did not change its contentious budget plans, while broader euro zone debt markets hardly budged as key U.S. midterm elections got underway. Italian yields were up 4-7 basis points on the day , under-performing other euro zone debt markets. In late trade, Italy’s 10-year bond yield was up 7 bps at 3.4 percent, while the gap over German Bund yields was at 295 bps — up from 289 bps late Monday but holding below the key 300 bps barrier..