In Asian Equity Markets stocks logged their sharpest declines in two weeks but the dollar held on to gains following strong U.S. data that again suggested the Federal Reserve might stick longer with aggressive interest rate increases. MSCI’s broadest index of Asia-Pacific shares outside Japan declined 1.4 percent, the biggest fall since Nov. 21, after climbing to a three-month high in the previous session. Stocks in Korea fell 1 percent, Taiwan lost by 1.6 percent, and Hong Kong shed 1.1 percent. Chinese stocks extended their recovery, with the broader index gaining 0.6 percent, while Japan was up 0.3 percent.

In Currency Markets the U.S. dollar held firm against major peers on Tuesday, following its biggest rally in two weeks after strong services data in the United States fueled bets the Fed may lift interest rates more than recently projected. The euro was also flat after an early light rebound, at $1.0492 following a 0.46 percent slide overnight. Sterling recovered 0.16 percent to $1.22035 after Monday’s 0.88 percent retreat. The Aussie dollar rose 0.6 percent to $0.6738. The U.S. dollar index changed hands at 105.27 in Asian trading, steady after Monday’s 0.7 percent rally, its biggest since Nov. 21.

In US Equity Markets stocks ended Monday lower, as investors spooked by better-than-expected data from the services sector re-evaluated whether the Federal Reserve could hike interest rates for longer, while shares of Tesla slid on reports of a production cut in China. The Dow fell 1.4 percent, to close at 33,947.1, the S&P 500 lost 1.79 percent, to end on 3,998.84, and the Nasdaq Composite 1.93 percent, to finish on 11,239.94. EQT Corp, one of the largest U.S. natural gas producers, was the steepest faller on the energy index, closing 7.2 percent lower.

In Commodities Markets oil prices fell over 3 percent on Monday, following U.S. stock markets lower, after U.S. service sector data raised worries that the Federal Reserve could continue its aggressive policy tightening path. Brent crude futures settled down 3.4 percent, at $82.68 a barrel. West Texas Intermediate crude (WTI) fell 3.8 percent, to $76.93 a barrel. Spot gold fell 1.6 percent to $1,769.14 per ounce. Silver too was caught in gold’s slipstream, falling 3.8 percent to $22.24. Platinum fell 1.8 percent to $996.51 per ounce, while palladium slid 1.3 percent to $1,874.50.

In European Equity Markets stocks fell on Monday after data showing a decline in euro zone business activity fanned recession fears, while hopes of easing of stringent COVID-19 curbs in China boosted miners and other China-exposed equities. The region-wide STOXX 600 closed 0.4 percent down. UK’s resource-heavy FTSE 100 was the only regional index in green, up 0.2 percent, helped by a jump in miners and China-exposed financials like Prudential. In company news, shares of Vodafone Group fell after the British mobile operator said Chief Executive Officer Nick Read would step down at the end of this year.

In Bond Markets U.S. Treasury yields rose on Monday as strong data on the services and manufacturing sectors, coming on the heels of a  solid non-farm payrolls report, reinforced expectations the Federal Reserve will continue to raise interest rates well into 2023. In afternoon trading, the yield on 10-year Treasury notes  was up 9.6 bps at 3.599 percent, posting its largest daily gain in roughly two weeks. The yield on the 30-year Treasury bond was up 5.8 bps at 3.618 percent. On the shorter-end of the curve, the two-year U.S. Treasury yield was up 10.9 bps at 4.390 percent.