Stock markets diverged while the dollar strengthened Monday as countries fought to hammer out trade deals days before US president Donald Trump鈥檚 tariff deadline.
Oil prices rose, even if OPEC and its allies agreed over the weekend to increase output more than expected.
鈥楾ariff threats look likely to take centre stage yet again this week, following further developments over the weekend,鈥� noted Richard Hunter, head of markets at Interactive Investor.
Trump announced he would send the first tariff letters to various countries on Monday ahead of his deadline Wednesday for trading partners to reach a deal expires. He warned that US levies on imports will snap back to the high levels he set in April if countries failed to make agreements.
Treasury secretary Scott Bessent said, however, that the measures would not聽be applied until August 1, instead of the July 9 cut-off that had been set by Trump.
Trade Nation analyst David Morrison said added time was not calming markets.
鈥榃hile (Bessent) downplayed the idea of this being a 鈥榥ew deadline鈥�, the market took little comfort, interpreting the remarks as an extension of trade risks,鈥� he said.
The White House has said several deals were in the pipeline but only two have been finalised so far with Britain and Vietnam.
Governments from major trading partners including Japan, India, the European Union and South Korea have fought for the past three months to get agreements.
Uncertainty prevails, with Trump declaring that an extra 10 per cent import levy would be added to any country 鈥榓ligning themselves with the Anti-American policies of BRICS鈥� 鈥� an 11-member alliance including Brazil, Russia, India and China.
Despite the tariff uncertainty, official data Monday showed German industrial production rose strongly in May, boosting hopes that Europe鈥檚 top economy has turned a corner.
The news helped to lift German equities more than in London and Paris.
Asia鈥檚 main stock markets mostly steadied.
Wall Street opened lower after record finishes by the S&P 500 and Nasdaq Composite on Thursday before the long holiday weekend in the United States.
鈥楾here is a little trade uncertainty in the mix today... but it isn鈥檛 a stretch to think the market is also simply adhering to some consolidation interest after making such a massive run,鈥� said Briefing.com analyst Patrick O鈥橦are.
The oil market was also in focus after Saudi Arabia, Russia and six other key members of the OPEC+ alliance said they would increase oil output in August by 5,48,000 barrels per day, more than expected.
The group said in a statement that 鈥榓 steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories鈥� led to the decision.
Shares in Shell dropped聽2.5聽per cent in afternoon trading after the British energy giant posted a weak trading update.
