Markets keep steady after an encouraging start to the week

European markets posted mild losses in early trading on Tuesday, while the mood was more positive in Asia.

Hong Kong and Shanghai were the biggest gainers, adding around 1%. Japan’s Nikkei started the day strongly before sliding into the red in the afternoon, losing 0.7%.

Dow futures were also dipping into negative territory, showing a 0.6% decline at 3:45 a.m. ET.

On Monday in the United States, the Dow climbed a bit higher, gaining 1.7%, or 410 points.

Wall Street has started showing signs of calmer trading. After six straight days of 500-point swings, and often twice as much, the Dow remained in a relatively narrower trading range of about 450 points on Monday.

And the VIX, a closely watched measure of market volatility, fell 12% on Monday after spiking last week.

So far, the Dow has recovered more than a quarter of the 2,756 points it lost between the peak on January 26 and the closing low on Thursday.

The comeback on Monday put the Dow and S&P 500 down slightly for the year and the Nasdaq up 1.1% in 2018.

The stock market is likely to keep taking cues from the bond market. The 10-year Treasury yield, which reflects inflation worries, crept to a four-year high on Monday before backing off.

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