Reuters

British finance minister Philip Hammond is under pressure to turn around the fortunes of Prime Minister Theresa May but with Brexit weighing on the economy he has little room to revive her fortunes with his budget next week.

U.S. producer prices rose more than expected in October, driven by a surge in the cost of services, and there were also signs of steady increases in underlying wholesale inflation.

Sterling was flat on the day at $1.3115, nursing losses after it skidded in the previous session against a backdrop of political turmoil as British lawmakers this week debate the U.K. government’s plans for leaving the European Union.

Asian stocks put in a subdued performance on Tuesday as Chinese economic data disappointed and investors pondered whether a marked flattening in the U.S. yield curve might be a harbinger of a future slowdown there.

China’s economy cooled further last month, with industrial output, fixed asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution.

Congressional Republicans pushed ahead on Monday on a U.S. tax code overhaul as a Senate panel considered the issue, but risks lay ahead with major intraparty disputes unsettled.

Oil prices held steady in a tight range Monday after briefly testing lower, with support from Middle East tensions and record long bets by fund managers balanced by rising U.S. production.

The Canadian dollar pared some recent gains against its U.S. counterpart on Monday, as investors turned attention to the resumption of NAFTA renegotiations and data showed that speculators had cut bullish bets on the currency.

Sterling fell against the dollar and euro on Monday as investors worried about Theresa May’s ability to stay on as British prime minister and get what they consider to be a good exit deal from the European Union.

OPEC raised its forecast on Monday for demand for its oil in 2018 and said its deal with other producers to cut output was reducing excess oil in storage, potentially pushing the global market into a deficit next year.