European stocks retreat with dollar

European stocks declined for a second day and dollar weakened as oil traded near $40 a barrel. 

Japanese 10-year bond yields rose to the highest since March before the government announces details of its fiscal stimulus plans.

The Stoxx Europe 600 Index slipped 0.6%. Japanese shares fell the most in almost four weeks to lead a slump in Asian equities, while energy companies retreated after US oil descended into a bear market on Monday.

Hong Kong’s market was shuttered by a typhoon. Yields on Japan’s 10-year debt climbed seven basis points to minus 0.07%, and the yen swung to an advance. Copper led gains by industrial metals.

Oil has slumped more than 20% from a peak reached in June, with Saudi Arabia cutting crude prices to Asia and further increases in US drilling rigs sparking Monday’s 3.7% tumble.

Japan’s government is due to unveil details of its ¥28trn fiscal stimulus package on Tuesday, as investors continue to mull the outlook for global central bank policies. 

The Reserve Bank of Australia lowered its benchmark lending rate to a record 1.5% at a meeting on Tuesday in a decision predicted by 20 of 25 economists.