After energy prices fell, traders lowered their bets on the European Central Bank raising interest rates.

Traders significantly reduced their bets on interest rate hikes by the European Central Bank and the Bank of England, as oil and natural gas prices fell after signs that the US and Iran may restart negotiations. The swaps market predicts that the European Central Bank will raise rates by 56 basis points this year, lower than the 68 basis points expected on Monday and 80 basis points expected a week ago; traders expect an 8 basis point rate hike at this month's policy meeting. Traders expect the Bank of England to raise rates by 39 basis points this year, lower than the previous estimate of 46 basis points.