Investors added to bets on the Bank of England cutting interest rates and short-term government bond yields hit a three-month low as global markets braced for a hit to economic growth caused by U.S. President Donald Trump's plans for import tariffs.

Bank of Japan Governor Kazuo Ueda said on Tuesday the central bank will aim to achieve 2% inflation, as measured by the overall consumer price index, on a sustained basis.

Tesla (NASDAQ:TSLA)'s electric-vehicle registrations in California fell about 12% last year, according to industry data, indicating mounting challenges for the automaker in the key U.S. market.

Goldman Sachs economists estimate that if the latest trade tariffs announced by U.S. President Donald Trump after assuming office in his second term are sustained, they could take a significant chunk out of Corporate America's bottom line.

The Trump administration's plans for trade tariffs come with inflation risks, three Federal Reserve officials warned on Monday, with one arguing that uncertainty over the outlook for prices calls for slower interest-rate cuts than otherwise.

Asian stocks bounced back on Tuesday after U.S. President Donald Trump postponed trade tariffs on Canada and Mexico, easing some market concerns, though caution persisted ahead of the impending tariffs on Chinese imports.