SYDNEY (Reuters) - Asian shares were subdued early Monday ahead of a week packed with major economic events, while the euro was briefly shaken by signs a German political deal on immigration might be in trouble.
Oil prices also took an early spill in the wake of President Donald Trump’s tweet that Saudi Arabia had agreed to lift oil production by “maybe up to 2,000,000 barrels”. [O/R]
The missive was later downplayed by the White House and Saudi Press Agency.
Brent crude LCOc1 was down 78 cents at $78.45 a barrel, while U.S. crude fell 69 cents to $73.46. The pullback was modest given U.S. crude rallied more than 8 percent last week, while Brent gained more than 5 percent.
In share markets Japan's Nikkei .N225 dipped 0.2 percent, with a survey of manufacturers showing sentiment had darkened a shade in the face of trade war threats.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was a fraction firmer in early trade. The index shed 2 percent last week as trade concerns clouded the outlook for Chinese growth and pressured asset prices there.
Tension is growing ahead of a July 6 deadline when the U.S. and China are due to impose US$34 billion of tariffs on their respective imports.
“The key risk for the market isn’t that Trump actually implements his trade threats but rather that a protracted period of trade uncertainty begins to weigh on economic activity,” said analysts at JPMorgan in a note.
“The evidence suggesting this is happening is far from conclusive, but ominous data points are
