Sydney - The dollar strengthened and gold halted a three-day rally as investors eased up after political uncertainty sent them toward haven assets.
European equity futures pointed lower as earnings from BP to BNP Paribas missed estimates.
The dollar gained against most major currencies, with the yen falling after a three-day rally. Japanese stocks retreated.
Gold slipped from the highest since November. That comes after the S&P 500 Index retreated from near-record levels and 10-year Treasury yields slid to a two-week low on Monday.
Hong Kong equities fluctuated as investors awaited data on China’s foreign-currency reserves.
Investors stepped back after snapping up haven assets on Monday. A Trump-fueled rally in equities has been faltering as traders assess how the US administration will balance protectionist trade rhetoric with promised tax cuts and spending increases.
At the same time, they are assigning greater risk premiums to European countries where anti-establishment movements are gaining traction ahead of elections.
Here are the main market moves:
Currencies
The Bloomberg Dollar Spot Index gained 0.4%, rising for a second day. The yen dropped 0.2% to 111.94 per dollar, after jumping 0.8% in the previous session.
The Aussie dropped for a second day, after briefly erasing an earlier loss. It is up 6.1% this year.
The New Zealand dollar advanced 0.1%, climbing for a fourth straight day, after inflation expectations jumped.
Central bank governor Graeme Wheeler said he won’t seek a second term and will step down when his first ends in September.
The euro dropped 0.6% to $1.0689 after sliding 0.3% on Monday.
Stocks
Futures on Euro Stoxx 50 Index fell 0.5% as of 7:39 in London, signalling benchmark index will drop when the market opens.
The MSCI Asia Pacific Index fell less than 0.1%, after closing on Monday at the highest level since July 2015.
The Topix index dropped 0.3%, following two days of gains.
Toyota Motor Corp. dropped 2.3% to the lowest since November after reporting a 39% decline in third-quarter operating profit.
Australia’s S&P/ASX 200 Index rose 0.1%, reversing an earlier loss of 0.6%.
The Reserve Bank of Australia held interest rates unchanged as an upswing in global commodity prices eases the impact of slower economic growth.
Hong Kong’s Hang Seng index rose 0.2% and the Shanghai Composite Index lost 0.1% ahead of data on foreign reserves.
Futures on the S&P 500 were little changed after the benchmark gauge slid 0.2% on Monday.
Commodities
Oil climbed 0.1% to $53.06 a barrel, after falling 1.5% on Monday after Baker Hughes Inc. said US drillers boosted rig count to the most since October 2015.
Gold slipped 0.3% to $1 232.10 after advancing for three straight days to the highest level since November.
Bonds
Australian 10-year bonds rose, driving yields down seven basis points to 2.70%, while similar-dated New Zealand debt saw yields drop eight basis points to 3.31%.
Yields on 10-year Treasuries lost one basis point to 2.40% after the biggest drop in more than two weeks in the previous session.
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