Stocks end mixed on new fears of protectionism

The S&P 500 slipped following stock declines in Europe and Asia amid concern over the escalating protectionist standoff between China and the U.S. Oil gained before a key OPEC meeting this week.

U.S. equity gauges came off their lows of the day as energy shares advanced along with software makers. The Stoxx Europe 600 Index posted its biggest two-day drop since March and Japan’s Topix Index fell the most in almost three weeks. Crude climbed as producers were discussed a smaller-than-expected boost to production. Treasury yields were little changed after trading near the lowest level this month.

Global trade is firmly back at the top of the agenda, with investors fretting about the intensifying confrontation between the U.S. and China. The Asian nation swiftly responded after President Donald Trump slapped tariffs on $50 billion of imports late last week, putting an additional 25 percent levy on $34 bil- lion of American agricultural and auto exports starting July 6.

“The relative policy calm was shattered late in the week as trade tensions escalated,” David Joy, the chief market strategist at Ameriprise Financial Inc., said in a note. “There is still time for negotiation. But the inexorable march toward a trade war with China took a significant step forward.”

Meanwhile in Europe, German Chancellor Angela Merkel and British Prime Minister Theresa May face tough weeks over migration and Brexit, respectively. Trump said in a tweet that the German people “are turning against their leadership as migration is rocking the already tenuous Berlin coalition.”

An index of emergingmarket currencies fell for a fifth day, leaving it on track for the biggest quarterly decline since September 2015. Developing-nation equities extended a drop after their worst weekly performance in a month, with an MSCI index retreating for a fourth day.