Reuters

The Trump administration raised the stakes, saying it would slap 10 percent tariffs on an extra $200 billion worth of Chinese imports.

A sell-off in Chinese markets knocked Asian stocks as U.S. threatens an additional $200B worth of tariffs on Chinese goods.

Global economic momentum appeared so far unscathed by trade tensions, prompting investors to buy riskier assets like emerging market currencies

Oil prices rose more than $1 per barrel due to growing supply outages, with Norway shutting one oilfield and Libya saying its production more than halved.

The Chinese yuan rebounded and the dollar strengthened broadly on Monday as investors bought riskier assets, encouraged by signs that trade tensions have yet to hurt economic momentum.

Sterling on Tuesday recovered some of the losses suffered after two ministers quit, with markets expecting Theresa May to survive as prime minister.

European shares edged higher on Tuesday as investors shifted from worrying about a trade war to focusing on a corporate earnings season expected to deliver solid results.

Brent crude led the way as hundreds of oil workers in Norway were set to strike later in the day.

Asian shares reversed early gains as anxieties about the Sino-U.S. trade war recast their long shadow over investor sentiment.

The British pound was frail after the departure of two key eurosceptic ministers raised worries about a “hard Brexit.”