The global equities market slid on Monday on the back of the markets worst week for 2019.
The market slide follows weekend punctuated by hard-line stances and threats of tariff retaliation as the hope of a trade deal between the U.S. and China hits a deadlock.
The standoff has left investors bracing themselves for further turbulence in the market as already seen over last week.
On Monday morning, the pan-European Stoxx 600 dropped by 0.7% as the S&P 500 futures lost 1.3%.
In China, shares slipped as the benchmark Shanghai Composite lost 1.2% and the CSI 300 shed 1.8%. The outlook was same Japan as the Nikkei declined 1.0%, reaching the lowest it has slipped to since late March. A brief surge, however, saw it close at 0.7%.
Emerging markets too felt the heat of the trade war as they slid 0.7 percent, near lows last witnessed in January.
The U.S. has maintained that the new tariffs will stand even as a fresh round of negotiations is started. There are also indications that U.S. president Donald Trump may meet his Chinese counterpart Xi Jinping during the G20 summit scheduled for Japan in June.
But observers point out that the global equity market could yet be hit with further losses as the risk of an escalation in the trade war increases. This comes as Washington noted that plans were underway to hike tariffs on the rest of Chinese imports worth about $300 billion.
Meanwhile, the Chinese yuan tumbled on Monday yet again as it hit the lowest value since early January. The currency traded at 6.88 to the U.S. dollar, 0.5% down.
The euro remained steady, however, as was the U.S. dollar. The euro stood at $1.1230, while a relatively stronger dollar remained largely unchanged at 97.324 against other major currencies.
The commodities market saw oil futures jump as concerns mount regarding supply disruptions that could hit key oil-producing regions in the Middle East. Brent crude futures increased 0.5% to reach $71.00 per barrel while the U.S. West Texas Intermediate futures saw marginal upsides to stand at $61.73 per barrel.