Brent crude clawed back above $109 a barrel in choppy Monday trading, with oil undermined by falling stocks and a stronger dollar amid new euro zone turmoil.
Gold extended earlier gains to hit its highest since late February, with some investors drawn to the precious metal's safe haven properties as a radical bailout package for Cyprus shook sentiment in the euro zone.
European shares closed off their sessions lows on Monday, bouncing back from sharp falls in the first day of trade since a surprise bailout plan for Cyprus that includes a levy on savers was announced.
U.S. stock market futures were heavily pressured across the board Monday as global markets reeled from a euro zone decision to force bank depositors in Cyprus to contribute towards a bailout.
Global markets traded lower and the euro hit a three-month low against the dollar as the decision by the euro zone to force bank depositors in Cyprus to contribute towards a bailout provided a stark reality check for investors.
Risk assets fell across the board on Monday as Asian markets saw a massive sell-off after a weekend decision by the euro zone to force depositors in Cyprus to contribute towards a bailout sparked concerns of contagion across other peripheral countries.
The Fed could add fuel to the market rally in the week ahead, keeping the Dow on track for its best first quarter since 1998.
The dollar fell from a seven-month high against a basket of currencies Friday after US data dented optimism about the economy and reinforced expectations the Fed will continue its bond-buying program for the foreseeable future.
U.S. Treasurys prices rose as lower stock prices and an unexpected drop in March U.S. consumer sentiment enhanced the allure of safe-haven U.S. government debt.
Gold finished higher on Friday, marking its second straight weekly gain, as the euro firmed and stocks fell.
Brent crude oil rose as strong U.S. jobs data fueled hopes of better demand outlook in the world's top oil consumer, while concerns over supply from the Middle East added support.
European shares closed lower on Friday as as investors booked gains after a 10-day global rally.
U.S. stock index futures remained largely unchanged following the latest round of economic reports, with the S&P 500 within 2 points of hitting its all-time closing high.
Former Fed Chairman Alan Greenspan told CNBC the "too big to fail" problem with banks is getting worse not better.
Asian equities could deliver gains of 20 percent by the end of the year, according to HSBC.
For more than a decade, good times in such markets as stocks and real estate were bad news for the greenback. Now, though, the dollar is benefiting from the stock market's surge to new highs and the improvement in U.S. economic data.
Japanese shares hit a four-and-a-half-year high on Friday on optimism over monetary stimulus, while other Asian markets recovered from previous losses after a strong U.S jobless claims report revealed that a recovery was well under way in the world's largest economy.
Bank of England Governor Mervyn King said on Thursday that the central bank was not seeking any further fall in the level of sterling which now appeared to be fairly valued.
Stocks could end the week with a record close in the S&P 500, setting up the index for a run at its all time high in the not too distant future.
The dollar fell from a seven-month high against a basket of currencies on Thursday as some traders bet it may have rallied too quickly.