Global stock indexes have fallen while US Treasury 10-year yields have risen to their highest since late November as investors weighed the idea of the Federal Reserve delivering fewer interest rates cuts than expected.

The US dollar was lower in early New York trading.

Fears of intervention by Japanese officials have slowed the US dollar’s gains against the yen.

Bitcoin also fell.

It was down 7.17 per cent at $US64,761.

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

On Tuesday, data showed new orders for US-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,” Vail Hartman, US rates strategist at BMO in New York, said.

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 6.0 per cent 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.

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

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

The benchmark 10-year yield climbed to 4.405 per cent, its strongest level since late November.

It was last up 5 basis points (bps) at 4.379 per cent.

The US dollar index fell 0.257 per cent, with the euro up 0.26 per cent to $US1.0771.

The US dollar was down 0.1 per cent 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 $US89 a barrel for the first time since October as oil supplies faced new threats from Ukrainian attacks on Russian energy facilities.

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

US crude recently rose 0.92 per cent to $US84.48 per barrel and Brent was at $US88.12, up 0.8 per cent on the day.

Spot gold added 0.7 per cent to $US2,266.84 an ounce.

This post was originally published on Michael West.