Goldman Sachs economists have revised their projections for U.S. GDP growth and the likelihood of a government shutdown, following changes in House leadership and geopolitical risks. The fourth quarter of 2023 is now expected to see a GDP growth of +1.6%, and the first quarter of 2024 is anticipated to record a +1.7% increase. These adjustments discard previous assumptions of a government shutdown.

The International Monetary Fund (IMF) has projected a decrease in global growth to 3.0% in 2023, further declining to 2.9% in 2024, according to its "Navigating Global Divergences" report. This anticipated slowdown is attributed to multiple shocks including rising living costs, geo-economic fragmentation, the withdrawal of fiscal support, and cyclical factors.

Asian equities eased on Tuesday, while the yen remained close to a two-week high as traders braced for the Bank of Japan's policy decision when it is likely to lift its inflation forecasts and ponder tweaks to its bond yield control.

Oil prices rose slightly in Asian trade on Tuesday after plummeting nearly 3% in the prior session amid easing concerns over Middle East supplies and growing anticipation of the Federal Reserve, although weak economic data from China weighed on sentiment.

The yen hovered near a two-week high on Tuesday, boosted by a report that the Bank of Japan (BOJ) could further tweak a key bond yield policy tool when it announces its monetary decision later in the day.