Australia

Australian shares are set to fall at the open, after a choppy session on Wall St, and volatile day in bonds.

ASX futures were down 0.2% or 15 points as of 8:00am on Tuesday, suggesting a lower open.

US stocks closed mostly lower on Monday in a choppy session that saw the 10-year Treasury yield briefly top 5% for the first time in 16 years.

The S&P 500 index ended about 7 points lower, or 0.2%, near 4,216, after flipping between modest gains and losses. That was the equity-market gauge's fifth straight session of losses, its longest stretch of declines since Dec. 7, 2022, according to Dow Jones Market Data.

The Dow Jones Industrial Average shed about 191 points, or 0.6%, finishing near 32,936, while the Nasdaq Composite Index rose 0.3%, after earlier trading below 12,922.216, the closing level needed to solidify a finish in correction territory, according to Dow Jones Market Data.

In commodity markets, Brent crude oil fell 1.9% to US$90.44 a barrel while gold was flat at US$1,972.84.

In local bond markets, the yield on Australian 2 Year government bonds was flat at 4.27% while the 10 Year yield was up at 4.78%. US Treasury notes were lower, with the 2 Year yield at 5.05% and the 10 Year yield at 4.85%.

The Australian dollar hit 63.29 US cents up from the previous close of 63.13. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was flat at 100.10.

Asia

Chinese shares closed lower, continuing last week's downturn. The benchmark Shanghai Composite Index fell 1.5% to 2939.29. The Shenzhen Composite Index lost 1.9% and the tech-heavy ChiNext Price Index dropped 1.7%. Foxconn Industrial Internet plunged 10%, the daily limit, after parent Foxconn Technology Group said it is cooperating with Chinese authorities on investigations. Photovoltaic equipment stocks led losses, with LONGi Green Energy Technology dropping 3.3% and Shanghai Aiko Solar Energy down 6.7%. Among the few gainers, Hangzhou HIK Vision Digital Technology advanced 3.4% after it reported positive 3Q earnings.

Hong Kong shares closed lower, notching a third straight session of declines amid a broad regional downturn. Factors including geopolitical tensions in the Middle East, rising US Treasury yields and concerns over China's property sector have fueled volatility across global equities, Saxo's APAC strategy team says in a note. The benchmark Hang Seng Index fell 0.7% to 17172.13 and the Hang Seng Tech Index slid 1.0%. Energy and tech names led the losses. Xinyi Solar and ENN Energy fell 3.1% and 4.8%, respectively, while tech and AI company Baidu shed 3.2% after target-price cuts by brokerages. Property stocks rose in a possible correction despite lingering concerns about the sector, reversing the past week's losses. Country Garden gained 2.5% and New World Development advanced 2.0%.

Japanese stocks ended lower, dragged by falls in electronics and steel stocks as concerns persist about higher costs of energy and borrowing amid the Middle East conflict. Advantest shed 3.0% and Nippon Steel dropped 2.3%. The Nikkei Stock Average fell 0.8% to 30999.55. The 10-year Japanese government bond yield was up 2.5 basis points at 0.860%, the highest level since July 2013. Investors are focusing on earnings as well as the latest developments in the war between Hamas and Israel. USD/JPY is at 149.94, compared with 149.84 late Friday in New York.

Indian shares closed lower, following regional equity markets, as tech and steel stocks weighed. A sharp rise in US bond yields due to the Fed's more hawkish policy outlook on better-than-expected economic data may lead to risks for foreign fund flows into emerging markets like India, HSBC Global Research analysts say in a note. The benchmark Sensex fell 0.35% to 65397.62. ITC and Tata Steel led the losses, falling 2.7% and 2.2%, respectively. JSW Steel shed 1.4%. Bank stocks were among the gainers, with Kotak Mahindra Bank rising 1.8% and IndusInd Bank adding 1.4%.

Europe

In European markets, the Stoxx Europe 600 ended 0.1% lower at 433.27, the CAC 40 was up 0.5% and DAX ended flat.

The FTSE 100 fell 0.4% to 7370.81, having earlier hit an eight-week intraday low of 7356.28. The U.K. index was pulled down by losses for heavyweight mining stocks, with Fresnillo down 3%, Anglo American losing 2.1%, Glencore down 1.9% and Antofagasta 1.7% lower. "The FTSE 100 is still struggling, weighed down by miners...This is on the back of weakness in China with the CSI 300 hitting a more than four year low overnight," writes Victoria Scholar, head of investment at Interactive Investor. However, some relief that tensions in the Middle East didn't escalate quite as much as feared over the weekend gave a lift to leisure and retail stocks.

North America

US stocks closed mostly lower on Monday in a choppy session that saw the 10-year Treasury yield briefly top 5% for the first time in 16 years.

The S&P 500 index ended about 7 points lower, or 0.2%, near 4,216, after flipping between modest gains and losses. That was the equity-market gauge's fifth straight session of losses, its longest stretch of declines since Dec. 7, 2022, according to Dow Jones Market Data.

The Dow Jones Industrial Average shed about 191 points, or 0.6%, finishing near 32,936, while the Nasdaq Composite Index rose 0.3%, after earlier trading below 12,922.216, the closing level needed to solidify a finish in correction territory, according to Dow Jones Market Data.

A correction is widely viewed as being set when an equity index closes at least 10% below its prior peak.

The 10-year Treasury yield fell 8.8 basis points to 4.836%, after briefly punching above 5% earlier in the session.

Earnings remain a key focus among investors, with Microsoft Inc. (MSFT) and other powerful tech giants (GOOG) (META) (AMZN) set to report third-quarter earnings this week.