Markets fall as US dollar hits 12-year high

Stocks fell sharply on Tuesday.

The MSCI All-Country World Index tumbled 1.7 percent, the most in two months. The S&P 500 fell 1.7 percent, erasing its gains for the year. The STOXX Europe 600 Index fell 0.9 percent.

The US 10-year Treasury yield fell six basis points to 2.13 percent. The 10-year German bund yield fell eight basis points to 0.23 percent.

Oil prices fell. Brent crude settled 3.7 percent lower while West Texas Intermediate declined 3.4 percent.

Helping to drive markets down was a rise in the US dollar. The latter rose against all but two of 16 major currencies, touching $1.0697 per euro, the strongest level since April 2003.