U.S-China trade war unsettles stock market

Stock markets around the world retreated on Monday amid concerns over the 
impact of a trade spat between China and the United States, while
oil prices rallied to a four-year-high after OPEC ignored U.S. calls to
raise supply.

Oil prices jumped more than three per
cent to a four-year high after Saudi Arabia and Russia ruled out any
immediate increase in production despite calls by Trump for action to
raise global supply.

Brent crude was last at 81.36 dollars, up 3.24 per cent.

U.S. crude oil futures settled at 72.08 dollars per barrel, up 1.84 per cent.

Wall Street equities stumbled on a wave
of uncertainty over the future of U.S. Deputy Attorney General Rod
Rosenstein, who oversees the special counsel investigation into Russia’s
role in the 2016 presidential election.

The White House said President Donald Trump and Rosenstein are scheduled to meet on Thursday to discuss Rosenstein’s future.

The White House announced the meeting after a flurry of conflicting media reports on whether Rosenstein had resigned.

The New York Times last week reported
that Rosenstein had suggested secretly recording Trump in 2017 and
recruiting Cabinet members to invoke a constitutional amendment to
remove him from office.

The Dow Jones Industrial Average fell
157.92 points, or 0.59 per cent, to 26,585.58, the S&P 500 lost 9.66
points, or 0.33 per cent, to 2,920.01, and the Nasdaq Composite dropped
0.10 points.

MSCI’s gauge of stocks across the globe shed 0.46 per cent.

U.S. Treasury yields across maturities
briefly fell by around two basis points after an initial report that
Rosenstein had resigned before ticking back up.

Benchmark 10-year notes last fell 3/32 in price to yield 3.0796 percent, from 3.068 per cent late on Friday.

 In European equities markets, the benchmark index for euro zone blue chip stocks retreated 0.6 per cent.

 Meanwhile, the pan-European
STOXX 600, which also includes stocks in Britain and outside the
European Union, was down 0.56 per cent.

 Europe had followed Asia
lower, with MSCI’s broadest index of Asia-Pacific shares outside Japan
closing 1.17 per cent lower, while Japan’s Nikkei rose 0.82 percent.

 China and the United
States, the world’s two biggest economies, implemented with fresh
tariffs on each other’s goods on Monday, showing no signs of backing
down from an increasingly bitter
trade dispute.

 Such dispute is expected to knock back global economic growth.

 A worsening trade
environment is likely to exacerbate diverging economic performance and
policy rates between different regions, Citi analysts said in a note on
Monday.

 Brexit, as Britain’s
planned exit from the European Union is known, weighed on sentiment. On
Friday, British Prime Minister Theresa May said talks with the EU had
hit an impasse.

 British opposition leader
Jeremy Corbyn said on Sunday he would support a second Brexit referendum
if his Labour Party backs the move, heaping more pressure on May.

 There is speculation that she could opt to call a snap parliamentary election.

European Central Bank chief Mario Draghi
said he expected a vigorous pickup in euro zone inflation, backing moves
toward unwinding an ECB asset purchase program meant to stimulate the
economy.

 That drove the euro to a more than three-month high against the dollar.

 The dollar index fell 0.02 per cent.

 Speaking at the annual Asia
Pacific Petroleum Conference (APPEC) in Singapore on Monday, Unipec
President Chen Bo said improved energy efficiency and technological
changes are keys to the
trend.