“Everything is selling off right now,” Ray Attrill, head of forex strategy at National Australia Bank in Sydney told Reuters.
“Our working assumption is that we are unlikely to see any meaningful resolution to the trade dispute anytime soon.”
On Friday, the Dow Jones Industrial Average fell 155.36 points, or 0.58 percent, to 26,428.06, S&P 500 lost 24.58 points, or 0.83 percent, to 2,928.98 and the Nasdaq Composite dropped 118.91 points, or 1.47 percent, to 7,992.21.
Concerns over lower demand following trade tensions between the world’s two biggest economies weighed on oil prices early on Monday.
Brent crude was down 50 cents, or 0.8 percent, at $61.39 a barrel by 0029 GMT.
U.S. crude was down 24 cents, or 0.4 percent, at $55.42 a barrel.
Last week, Brent dropped more than 2 percent and US crude ending the week around 1 percent lower.
A Reuters report said that US crude oil exports surged by 260,000 barrels per day (bpd) in June to a monthly record of 3.16 million bpd, suggesting there is plenty of oil in the market.
Also in the US, the weekly oil rig count, an indicator of future production, fell for a fifth week in a row as most independent producers cut spending even though majors were still pushing ahead with investments in new drilling, the report said.
Middle East markets
Stock markets in the region traded mostly lower on Sunday, tracking a retreat in global markets at the end of last week.
Saudi Arabia’s index fell 1.3 percent as National Commercial Bank, the country's largest lender, was down 2.9 percent. Al Rajhi Bank, the country's biggest Islamic lender, was down 1 percent.
Dubai’s index dropped 1.5 percent with Emaar Properties down 4 percent. After market closure, Emaar Properties reported a drop a 7.4 percent drop in Q2 profit.
In Abu Dhabi, the index declined 1 percent, dragged lower by the market heavyweight lender First Abu Dhabi Bank, which was down 1.4 percent.
Qatar's index fell 0.4 percent with the Gulf's biggest lender Qatar National Bank retreating 0.8 percent and Qatar Navigation losing 3.8 percent.
Egypt’s blue-chip index EGX30 was the best performer in the region, adding 0.8 percent. Commercial International Bank rose 1.6 percent.
Kuwait’s premier market index lost 0.4 percent while Bahrain’s index and Oman’s indices were mainly flat.
The dollar was trading a shade lower early on Monday.
The dollar index .DXY, which measures the greenback against a basket of six major currencies edged 0.1 percent lower.
Gold prices gained on a weaker dollar.
Spot gold rose 0.2% to $1,443.56 per ounce as of 0107 GMT.
U.S. gold futures inched down 0.1% to $1,455.40 an ounce.
(Reporting by Gerard Aoun; Editing by Seban Scaria)
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