Global Markets Jitter as Trade Tensions Rise

Global equity markets struggled for direction on Monday, with MSCI's index inching slightly higher as U.S. tariff threats loomed large. Treasury yields ticked up, reflecting investor anxiety ahead of key inflation readings and the upcoming earnings season. The euro dipped to a near three-week low, while the dollar remained steady amidst President Trump's tariff announcements against the EU and Mexico.

Trump signaled his willingness to negotiate amidst criticism from the European Union over stalled trade talks. As the U.S. earnings season kicks off, major banks are set to release their reports, with profit growth expectations tempered by recent trade tensions. Investors are keenly watching for signs of a market rebound amid a backdrop of economic uncertainty.

Fluctuations were also seen in other markets. The Dow Jones, S&P 500, and Nasdaq posted modest gains. U.S. treasury yields climbed slightly, reflecting market sensitivity to Federal Reserve Chair Jerome Powell's uncertain future amid pressure from Trump for more aggressive rate cuts. Meanwhile, commodities like oil and gold softened as investors remained cautious ahead of new economic data.

(With inputs from agencies.)