U.S. yields climb

Asian stock markets dipped North Korea abruptly cancelled talks with South Korea scheduled for Wednesday and threatened to walk away from talks with the U.S, while surging bond yields revived worries about faster U.S. interest rate hikes that could curb global demand. Strong U.S. retail sales and factory data on Tuesday pushed the U.S. 10-year yield through a key level to hit 3.095 percent, its highest since July 2011, raising worries about higher borrowing costs for companies worldwide.

A cancellation of the June 12 summit in Singapore could see tensions on the Korean peninsula flare again even as investors worry about China-U.S. trade tensions and the sustainability of global economic growth.

Planned U.S. sanctions against Iran that are likely to restrict crude oil exports from one of the biggest producers in the Middle East have been underpinning prices. This is raising fears that markets will face shortages later this year when trade restrictions come into effect.

In currencies, strong U.S. data underpinned the dollar in currency markets. EURUSD fell to as low as 1.18155 its lowest level in about five months. USDJPY is trading at 110.27 yen after having hit a near four-month high of 110.45 yen earlier in the week.

In commodities markets, gold slightly rebounded after hitting a 4 1/2-month low the previous day on a strong dollar at 1,294 per ounce. Crude oil prices remained near recent highs, 0.4 percent lower at 71.06 after reaching 71.92 its highest level since November 2014, amid concerns U.S. sanctions on Iran may restrict crude exports from a major producer.

Brent crude oil traded at 78.21 a barrel, down by 0.3 percent, after it reached previously at peak of 79.47 a barrel, its highest since November 2014.

US Building Permits, Crude Oil Inventories and SNB Chairman Jordan Speech are the most important economic events for today, which can move the forex market. Moderate to high volatility should be expected for the CHF Swiss Franc, and the US Dollar.