The scarcity of used cars in the U.S. market, kept static between 2.2 and 2.3 million for four months, is set to drive up retail prices, following an increase in wholesale rates since late August. The number of unsold cars on U.S. lots fell by 8% year on year in October to around 2.26 million, equating to a 47-day supply at current sales rates, significantly below the targeted 60-day inventory.

U.S. Treasury Secretary Janet Yellen said on Monday it was too early to speculate on the economic consequences of the Israeli-Palestinian conflict, and that the impact would depend on whether the conflict spread to the wider region.

Most Asian stocks rose on Tuesday, recovering a measure of recent losses tracking some strength in Wall Street, although markets still remained on edge over the Israel-Hamas war and key upcoming economic readings from China.  

Oil prices stabilised on Tuesday after a more than $1 slide on Monday amid hopes the U.S. would ease sanctions on producer Venezuela and as Washington stepped up efforts to prevent an escalation of the war between Israel and Hamas.

The U.S. dollar started Tuesday on the back foot as investors took stock of developments in the Middle East and braced for a slew of speeches by central bank officials this week headlined by Fed Chair Powell to gauge the monetary policy outlook.