Palladium futures fell Tuesday, as the US dollar rose against its peers, despite a recovery in the demand for electric cars.

Palladium is heavily used in the manufacturing of parts and components that reduce pollutant emissions.

This comes as many countries have tightened their weather protection standards in the past few years to combat the climate change by switching to clean energy and electric cars.

The dollar index rose against a basket of currencies by 0.1% to 96.7 points as of 13:34 GMT, after it hit a high of 97.1 and a low of 96.6.

While the coronavirus crisis continues to cast a shadow on the global economy, which is weighing on demand for commodities, metals and almost all risk assets.

Palladium September futures fell 1% to trade at $1,932.9 an ounce as of 13:35 GMT, after hitting today's high at $1,955 and a low of $1,928.3.

Oil prices continued to drop as the US market opened on Tuesday, away from two-week highs on active profit taking, while concerns about weaker demand in the US reignited as Covid-19 cases surge anew to record highs. Ahead of the American Petroleum Institute preliminary data on the US crude inventories.

US crude fell 1.7% to $39.92 a barrel while Brent lost 1.4% to $42.48, away from a session high at $43.16. 

US crude marked a 0.9% profit on Monday, with a two-week high at $41.06, as Brent rose 0.75%, with a June 23 high at $43.68 a barrel. 

The strong gains came on hopes for reaching some balance as OPEC Plus exacts massive cuts while global oil demand improves. 

Reuters reported record increases in Covid 19 cases in 16 US states, with White House chief infection expert Anthony Fauci warning the virus might have mutated to become more infectious. 

Florida registered 11,000 new cases in a single day, more than any other daily record by a European country, which prompted the state’s authorities to cancel many reopening measures there. 

Similarly, new cases in Australia have risen among other countries, raising concerns of a second wave of the pandemic. 

The American Petroleum Institute will release later today its preliminary data on US crude inventories, with forecasts to drop for the second straight week, while the Energy Information Administration will reveal its official report tomorrow.

The US dollar rose on the European market on Tuesday, recovering from a 2-week low, to head for its first daily gain in 3 days, on renewed demand for the greenback as the best alternative investment, amid the spike in coronavirus infections in the US, after the US government failed so far to contain the coronavirus outbreak.

The dollar index rose 0.4% to 97.15 points, after opening at 96.75, with a session-low of 96.60 points.

The greenback lost 0.4% yesterday, posting its second straight daily loss and hit a 2-week low of 96.57 points, after strong data on the US services sector that raised investors risk-appetite.

Reuters reported record increases in Covid 19 cases in 16 US states, with White House chief infection expert Anthony Fauci warning the virus might have mutated to become more infectious. 

Florida registered 11,000 new cases in a single day, more than any other daily record by a European country, which prompted the state’s authorities to cancel many reopening measures there. 

Johns Hopkins University reported that new cases of Covid-19 virus are still spiking in most US states, with a total of 2.9 million confirmed cases and a death toll of more than 130,000 victims.

European stocks opened low on Tuesday, to pullback from the 4-week high that was hit yesterday, on profit-taking and investors' risk-aversion, after the US government failed so far to contain the coronavirus outbreak, and after the reemergence of new cases in several countries, especially Australia.

The Stoxx Europe 600 index fell 0.9% as of 11:15 GMT, after closing higher by 1.6% yesterday, hitting a 4-week high of 372.37 points, after strong rally in Chinese stock market and hopes for a quick recovery by the world's second largest economy.

The pan European index opened lower today, to pullback from the 4-week high on profit-taking, with most European markets and sectors seeing red today.

The travel and leisure sector saw the largest losses in Europe today, with a drop by 1.5%, on the negative news about the coronavirus pandemic.

As for the US, the Miami metropolitan area in Florida registered 11,000 new cases in a single day, more than any other daily record by an European country, which prompted the state’s authorities to cancel many reopening measures there. 

Johns Hopkins University reported that new cases of Covid-19 virus are still spiking in most US states, with a total of 2.9 million confirmed cases and a death toll of more than 130,000 victims.

New cases in Australia have risen as well among other countries, raising concerns of a second wave of the pandemic. 

S&P 500 futures fell more than 0.9%, after the index closed higher by 1.6% yesterday at Wall Street, posting the fifth daily gain, on US services PMI data.

Back to Europe, the Euro Stoxx 50 index fell 1%, France's CAC 40 fell 0.9%, Germany's DAX fell 1.1%, and the UK's FTSE 100 lost 1.2%.