In Asian Equity Markets stocks were in the red on Tuesday as rising COVID-19 cases in China hit the confidence of investors who are already worried about the Ukraine war and the first U.S. interest rate rise in three years that could come this week. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.97 percent. Hong Kong’s Hang Seng Index remained mired in negative territory Tuesday, falling 4 percent. China’s CSI300 index was down 1.78 percent. Australian shares closed down 0.73 percent. Tokyo’s Nikkei Index reversed its losses and was marginally higher, up 0.22 percent.

In Currency Markets the dollar was down on Tuesday morning in Asia, alongside the Japanese yen and the Australian dollar. The latest COVID-19 outbreak in China saw lockdowns in some cities, but the focus is firmly on the U.S. Federal Reserve’s March policy decision. The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.08 percent to 98.948. Against the Japanese yen, the dollar edged up 0.11 percent to 118.31. Sterling edged up 0.20 percent to $1.3026, with the Bank of England to hand down its policy decision on Thursday.

In US Equity Markets major stock indexes closed mostly lower on Monday, led by a more than 2 percent decrease in Nasdaq, as investors sold tech and big growth names ahead of this week’s Federal Reserve meeting and an expected hike in interest rates. The Dow rose 1.05 points to 32,945.24, the S&P 500 lost 0.74 percent, to 4,173.11 and the Nasdaq Composite fell 2.04 percent, to 12,581.22. Apple Inc shares fell 2.7 percent after its supplier Hon Hai Precision Industry Co Ltd, known as Foxconn, suspended operations in China’s Shenzhen amid rising COVID-19 cases.

In Commodities Markets oil prices fell more than 5 percent on Monday to the lowest in nearly two weeks amid hopes for progress toward a diplomatic end to Russia’s invasion of Ukraine – a development that would boost global supplies – while a pandemic-linked travel ban in China cast doubt on demand. Brent futures fell 5.1 percent, to settle at $106.90 a barrel, while U.S. WTI crude fell 5.8 percent, to settle at $103.01. Palladium fell 14.2 percent to $2,415.49 per ounce. Platinum fell 3.6 percent to $1,040.29. Spot gold was down 1.4 percent to $1,957.57 per ounce. Silver fell 2.7 percent to $25.11.

In European Equity Markets stocks rose on Monday, clinging to hopes of diplomatic efforts by Ukraine and Russia to end weeks-long conflict, while shares in Volkswagen rose after the German carmaker doubled its operating profit. The pan-European STOXX 600 index ended 1.2 percent higher, extending gains from Friday when Russian President Vladimir Putin signalled a positive shift in talks with Ukraine. Auto stocks climbed 3.3 percent to lead gains among sectors. Volkswagen AG rose 4.4 percent as higher prices and a more favourable product mix boosted operating profit.

In Bond Markets U.S. Treasury yields jumped to two-and-a-half year highs on Monday, ahead of what is expected to be the U.S. Federal Reserve’s first rate hike in three years on Wednesday to try to tame soaring inflation that shows no signs of slowing. Two-year yields, which are the most sensitive to rate hikes, jumped to 1.832 percent, the highest since Aug. 2019. Benchmark 10-year yields reached 2.106 percent, the highest since July 2019. Breakeven rates on five-year Treasury Inflation-Protected Securities (TIPS), a measure of expected annual inflation for the next five years, are at 3.48 percent.