In European Equity Markets the pan-European Stoxx 600 closed almost 0.1% lower, paring losses after falling as much as 0.5% earlier in the day. Bank shares were the worst performers, down 1.9%, while food and beverages stocks led gains with a 1% rise. Shares of French payments firm Ingenico climbed over 5% to top the Stoxx 600, while Swiss lender Cembra Bank gained about 4% after Credit Suisse upgraded the stock to “outperform” from “neutral.” Zalando shares fell 10% after Swedish investment firm Kinnevik sold its stake in the German e-commerce company.

In Currency Markets the U.S. dollar fell on Tuesday in choppy range-bound trading on the eve of an expected U.S. interest rate cut from the Federal Reserve, with markets anxious about an overnight spike in dollar funding costs. Against a basket of its rivals, the greenback edged 0.1% lower to 98.506. In other currencies, the euro was up 0.4% at $1.1030, catching a bid after an influential survey showed a brightening in German investor confidence. The ZEW index improved to -22.5 in September versus forecasts of -37 and the August reading of -44.1.

In Commodities Markets oil prices fell more than 6% on Tuesday after a top Saudi Arabian source told Reuters that production could be fully back on line within weeks, quicker than initially thought following weekend attacks that halved the kingdom’s output. Brent crude futures fell $4.45, or 6.5%, to $64.57 a barrel. U.S. West Texas Intermediate (WTI) crude fell $3.85, or 6.1%, to $59.05 a barrel. In the immediate fallout from the attacks, state-owned producer Saudi Aramco told some Asian refiners it would meet its oil commitments, albeit with changes, sources said.

In US Equity Markets stocks edged slightly lower on Tuesday as a declined in oil prices weighed on the energy sector. The S&P 500 was down 0.03%, at 2,996.93. The Nasdaq Composite fell 0.04%, at 8,150.26. Rate-sensitive bank index was down 1% in anticipation of a reduction in borrowing costs. Among stocks, Home Depot Inc fell 1.6% after Guggenheim downgraded the home improvement chain’s shares to “neutral” from “buy”. Corning Inc declined 7.8% after the Gorilla glass maker cut its current-quarter display volume forecast.

In Bond Markets U.S. Treasury yields fell on Tuesday, ahead of an expected interest rate cut by the Federal Reserve at the conclusion of its two-day policy meeting on Wednesday. The cost for banks and Wall Street dealers to borrow dollars in the overnight repurchase agreement market rose as high as 10% on Tuesday, well above the Fed’s target range of 2.00%-2.25%. It then fell to zero after the New York Federal Reserve said it would conduct a reverse repurchase operation in a bid to lower the funding costs.