Asian markets are getting closer, with US and Chinese tariffs at the forefront; oil blades

The cautious mood in the market comes as investors keep tabs on trade tensions between the United States and its trading partners, notably China. US tariffs on Chinese products of $ 34 billion are expected to come into effect on July 6, China to retaliate with tariffs equivalent to those of US products

"Potentially, we enter a new territory unexplored Now, I think, the realization that the downside risk could be more important, "Rainer Michael Preiss, executive director at Taurus Wealth Advisors, told CNBC's Capital Connection.

Uncertainty over trade policy, most recently related to foreign investment in US technologies, as well as fears that retaliation could intensify to the point that global economic growth is adversely affected, weighed about the sentiment of investors in recent weeks. [U]the proof will be in the pudding [on foreign investments] and in the meantime, there is still no sign of resumption of trade negotiations between the United States and China before the July 6 tariff start date. … Our basic scenario remains that "Things will probably get worse before they improve," said Shane Oliver, chief economist at AMP Capital, in a Saturday note.

The main Asian markets are down for the year. On Friday, the Shanghai composite was down 13.9%, on the way to its worst year since 2011, when the index fell more than 20%. The other markets are getting a little better, but still in negative territory: Japan fell by 2.02% this year and the benchmark South Korea fell by 5.73% from here Friday

. to a decline of at least 20 percent from recent highs. The Chinese benchmark ended Monday's session down more than 22% from its high of 5287.03 in 2012.

Despite this uncertainty, Wall Street closed up slightly above 0.23% 55.36 points, closing at 24,271.41.

On the energy front, President Donald Trump unexpectedly announced what he claimed was a new agreement with Saudi Arabia. Trump said in a tweet that Saudi Arabia had agreed to increase production by nearly 2 million barrels a day, while the White House somewhat tempered the president's proclamation. The Trump announcement comes a week after OPEC's decision to increase oil production after slowing production since 2017.

Oil prices fell on Monday, as contracts to futures on West Texas Intermediate fall 0.88% Oil and Brent futures fell 1.11% to $ 78.35