The Cairo stock market was heavily battered on Sunday shedding 10 percent on the back of widespread violence which erupted after President Mohamed Mursi’s gave himself new powers allegedly to cover his decisions from judicial review.

But at the weekend, Mursi tried to defuse the backlash against a decree he issued last week and called for dialogue with political opponents and stressing the temporary nature of his decree.

After being locked in a meeting with his advisers for much of yesterday (Sunday), Mursi issued a statement in which he declared his “firm commitment to engage all political forces in the inclusive democratic dialogue to reach a common ground”.

The efforts to defuse the fight comes as supporters and opponents of the Muslim Brotherhood plan further demonstrations on Tuesday, which many fear could lead to the continuation of violence that has seen more than 500 people injured in protests since Friday last week.

The Cairo stock market plunged nearly 10 percent on Sunday as a result of the crisis. The Guardian Newspaper described this as the worst fall since the uprising that toppled Hosni Mubarak in February last year.

The Supreme Judicial Council said Mursi’s decree should apply only to “sovereign matters”.

Although it did not specify what that meant, its statement, read on television, suggested it did not reject his decree outright.

It called on judges and prosecutors who have called for a strike to return to work.

Mursi’s office this declaration was deemed necessary in order to hold accountable those responsible for corruption as well as other crimes during the previous regime and the transitional period.

Protesters clashed with riot police and tear gas fanned through Cairo’s Tahrir Square.

Activists were camped in the square for a third day, blocking traffic with makeshift barricades. Nearby, riot police and protesters clashed intermittently.

Reuters reported that Mursi’s supporters and opponents plan big demonstrations on Tuesday that could be a trigger for more street violence.