Global Markets Fluctuate Amid Tariff Uncertainty and Oil Production Increases

Global equity markets experienced a downturn as uncertainty over tariffs clouded investor sentiment, oil prices dropped with prospects of production hikes, and bond yields rose due to resilient U.S. services sector data. Meanwhile, gold prices rallied on a weaker dollar ahead of the U.S. Federal Reserve's interest rate policy announcement.

The MSCI global equities index faced a decline on Monday, triggered by increased uncertainty regarding tariffs. This was paired with a drop in oil prices amidst talks of production hikes by OPEC+. U.S. Treasury yields saw an uptick, buoyed by new data underscoring the robustness of the services sector.

Safe-haven assets like gold climbed sharply as investors braced for the U.S. Federal Reserve's forthcoming interest rate decision, with the weakening dollar boosting appeal. Concurrently, the MSCI global stocks dropped marginally following a successful nine-session rise.

Overall, trading remained lackluster due to public holidays in major economies. Market participants expressed concern over U.S. President Trump's announcement of a 100% tariff on foreign-produced movies, which could potentially extend to other industries, amplifying investor jitters around the globe.

(With inputs from agencies.)