Rising Bond Yields, Geopolitical Tensions Weigh on Global Markets

The global markets reflected growing anxiety due to rising bond yields, attributed to concerns about inflation and government spending. Geopolitical tensions also weighed on market sentiment, with fresh strains between the U.S. and Iran dimming prospects for peace in the Middle East.

The Strait of Hormuz disruption further exacerbated market unease, leading to a mixed performance across major benchmarks. Asian markets finished trading on a mixed note, while Wall Street futures were directionless after suffering mild losses on Monday.

Major European indices traded mostly negatively, with Germany's DAX at 26,257.73 down 0.42%, and France's CAC 40 at 8,540.63 down 0.45%. The six-currency Dollar Index was trading flat, while global bond yields hardened.

The expectation of a rate hike in the Fed's September review diminished only marginally from the previous day, amidst volatility in crude oil prices. WTI crude rallied close to half a percent, Brent oil benchmark edged up from the flatline, and gold slipped more than half a percent.