U.S. Opening Bell: U.S. Futures Slip; USD Stabilizes; Global Bonds Hit

European equities along with futures for the S&P 500, Dow and NASDAQ 100 slipped lower on Monday after finance leaders from the Group of 20 warned that trade tensions threaten the global economy. US Ppresident Donald Trump sparked a global selloff as well as the biggest USD slump since March after he threatened to extend tariffs to all Chinese imports and criticizsed the Federal Reserve for on its monetary policy.

Since the Trump administration has opposed a strong dollar from the outset, we can only expect it to step up its scrutiny over currency moves as the global trade dispute intensifies. This could, in turn, warrant more volatility for the greenback, as well as for equities.

The pan-European STOXX 600 was weighed down by travel companies, after Ryanair (LON:RYA), the largest European airline, unveiled a 20 percent profit setback for the first quarter.

The UK's FTSE was hit by a recovering pound and lower oil majors and commodity stocks; financial stocks were also lower on Monday.

Airlines were affected following a disappointing set of results from budget airline Ryanair (LON:RYA). The no-frills airline were down 5.5 percent after it reported that average fares would be lower than previously expected as a result of high competition, strikes and warmer weather in Northern Europe. Shares in EasyJet (LON:EZJ) and British Airways owner International Consolidated Airlines (LON:ICAG) were down 2.2 percent and 2.1 percent respectively.

Earlier, during the Asian session, regional shares posted a lacklustre performance. Japan's TOPIX fell 0.4 percent, dragged lower by a stronger yen, reversing an early rise and suffering an aggregate three day loss of 0.7 percent.

Sharp gains in the financials sector, led by Mitsubishi UFJ Financial Group (T:8306), weren't enough to offset losses in exporters shares, led by electric appliances and automakers.

Technically, the Japanese benchmark is resuming a falling trend, upon nearing the downtrend line since May 21.

Reuters reported that the Bank of Japan was engaging in “unusually active discussions” ahead of its July decision, leading to speculations that the last major global central bank to be engaged in a heavily accommodative quantitative easing was considering scaling back. That sent the country's currency higher: technically, the price bounced on its uptrend line since March 27, guarded by the 50 DMA, after it crossed above the 200 DMA, triggering a golden cross. On the other hand, both MACD and RSI provide sell signals.

The news reports also pushed Japanese bonds into a free fall, dragging European bonds along.