European stocks were mostly lower on Monday morning, as investors braced for the ramifications of another round of tariffs from the two major economies.
Gold was steady on Monday partly in response to a dip in the dollar, but activity was muted because investors are waiting for a U.S. central bank meeting this week, expected to result in an interest rate increase.
The dollar slipped on Monday, erasing its earlier gains, as investors searched for fresh clues to extend a multi-month rally in the greenback before a widely expected interest rate hike by the U.S. central bank this week.
Oil prices rose 2 percent on Monday as U.S. sanctions restricted Iranian crude exports, tightening global supply, with some traders forecasting a spike in crude to as much as $100 per barrel.
Tariffs between the U.S. and China went into effect at 12.01 p.m. HK/SIN on Monday.
U.S. stock index futures fell ahead of Monday's open as the trade war between the U.S. and China escalated with further tariffs and the cancellation of trade talks between the two countries is cancelled.
U.S. government debt yields inched higher Monday ahead of the Federal Reserve's two-day policy meeting.
The Dow Jones Industrial Average and S&P 500 hit record highs on Friday and posted solid weekly gains as concerns about global trade dissipated.
European stocks posted solid gains by the end of Friday's session.
On Wall Street, the Dow Jones Industrial Average also reached a new high since January and the S&P 500 surged to a new record.
Oil prices pared gains on Friday following a report that OPEC and other large crude exporters are considering another output hike.
Gold prices edged lower on Friday as the dollar firmed on persistent concerns about an escalating trade between the United States and China in a week where both sides slapped new tariffs on each other's goods.
The dollar was close to two-month lows on Friday, as the yen also weakened from lower safe haven demand.
U.S. government debt yields held steady Friday after a notable uptick in long-term rates earlier in the week.
European stocks ended Wednesday's session relatively upbeat, as investors shook off concerns surrounding escalating trade tensions.
China was currently facing "greater difficulties" in keeping its economy stable, Chinese Premier Li Keqiang said on Wednesday.
Oil prices slipped on Thursday after U.S. President Donald Trump called on OPEC to "get prices down now!" ahead of a meeting of major oil exporters.
Gold hit its highest in nearly a week on Thursday as the dollar slumped, its safe-haven appeal lessened by fading fears over Sino-U.S. trade tensions and as investors opted for assets perceived as more risky, like stocks.
The dollar fell to a nine-week low against a basket of major currencies on Thursday as investors shifted their focus from a trade row between China and the United States to the Federal Reserve's monetary tightening plans.
The benchmark used to determine mortgage rates reached its highest level since May after the release of strong U.S. economic data