GLOBAL MARKETS-Stocks Fall, Yields Climb as Investors Assess Rate Cut Outlook

GLOBAL MARKET - NEW YORK. Global stock indexes fell on Tuesday, with all three major U.S. stock indexes down about 1%, while U.S. Treasury 10-year yields rose to their highest since late November as investors weighed the idea of the Federal Reserve delivering fewer interest rates cuts than expected.

The U.S. dollar was lower in early New York trading. Fears of intervention by Japanese officials have slowed the dollar's gains against the yen.

Bitcoin also fell. It was down 7.17% at $64,761.

Recent solid U.S. economic reports have raised doubts about whether the Fed could deliver the three rate cuts outlined in its latest forecast.

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On Tuesday, data showed new orders for U.S.-manufactured goods rebounded more than expected in February.

"The pendulum of sentiment may be shifting towards the hawkish direction, but there is still a lot of room for things to change for the next couple of weeks," said Vail Hartman, U.S. rates strategist at BMO in New York.

By contrast, euro zone manufacturing activity contracted at an even steeper pace in March than in February, as demand continued to fall, data on Tuesday showed.

German inflation eased, data showed. Broader euro zone inflation data is due on Wednesday, and will be closely watched for indications about when the European Central Bank will cut rates.

A 6% decline in Tesla shares also weighed on Wall Street. The company posted a fall in quarterly deliveries for the first time in nearly four years and missed Wall Street estimates.

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The Dow Jones Industrial Average fell 382.36 points, or 0.97%, to 39,184.49, the S&P 500 lost 50.8 points, or 0.97%, to 5,192.97 and the Nasdaq Composite dropped 227.94 points, or 1.39%, to 16,168.89.

The pan-European STOXX 600 index lost 0.71% and MSCI's gauge of stocks across the globe shed 0.63%.

The benchmark 10-year yield climbed to 4.405%, its strongest level since late November. It was last up 5 basis points (bps) at 4.379%.

The dollar index fell 0.257%, with the euro up 0.26% to $1.0771. The U.S. dollar was down 0.1% against the Japanese yen.

Japanese Finance Minister Shunichi Suzuki said on Tuesday that authorities were ready to take appropriate action against excessive currency market volatility.

Brent crude briefly rose above $89 a barrel for the first time since October, as oil supplies faced new threats from Ukrainian attacks on Russian energy facilities.

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Ukraine struck one of Russia's biggest refineries on Tuesday.

U.S. crude recently rose 0.92% to $84.48 per barrel and Brent was at $88.12, up 0.8% on the day.

Spot gold added 0.7% to $2,266.84 an ounce.