LONDON—Traders were back on Russia sanctions watch on Tuesday with oil, inflation-sensitive bond yields, and stocks all edging higher ahead of an expected new measures from the West in coming days. Europe saw the STOXX 600 index nudge 0.3 percent higher as oil, industrial, tech, and insurance stocks all made ground, while the euro clawed back a sliver of the 1.8 percent it had lost against the dollar in recent days. With investors waiting on the new batch of sanctions—most likely on Wednesday according to France’s European Affairs Minister—oil was up 1 percent, lifting benchmark German Bund and U.S. Treasury bond yields due to the prospect of higher global inflation. Ewan Markson-Brown, a fund manager at CRUX Asset Management, said the global economy’s path was now highly dependent on how the war in Ukraine progresses, and how policymakers in the U.S. and China manage the respective economic challenges. “I think …