LONDON: Stocks markets in Europe and the United States dipped on Tuesday while the dollar perked up as investors followed comments by the chief of the US Federal Reserve.
Stock markets also mostly slid across Asia, led by share price falls for the energy sector one day after oil prices plunged on excess supply concerns.
Brent crude hit another three-month low Tuesday, at $71.35 per barrel, before recovering.
Federal Reserve chief Jerome Powell began two days of congressional testimony on Tuesday by indicating the US central bank will continue to raise rates gradually as the economic outlook remains strong despite uncertainty over trade policy.
FXTM research analyst Lukman Otunuga said investors are "concerned with Powell's thoughts on global trade tensions and the possible impact these could have on the Fed's policy path."
Fears about a China-US trade war continue to nag investors, with both sides filing counter-complaints at the World Trade Organization after recently imposing and threatening further tariffs on billions of dollars worth of goods.
On Monday, the International Monetary Fund warned about the effects of a stand-off between the world's two economic superpowers.
On Tuesday, the EU and Japan signed a sweeping free trade deal that officials called a "clear message" against protectionism, as Washington imposes controversial tariffs and threatens a trade war.
The huge deal was signed as US President Donald Trump unsettles allies and provokes rivals with his aggressive "America First" trade policy.
Both the EU and Japan have been hit with new US tariffs despite their longstanding alliances with Washington.
Markets' attention is also on the start of the corporate earnings season, with Netflix disappointing analysts on growth in the number of its subscribers in data released late Monday still affecting markets.
Its shares plunged nearly 12.7 percent in early trading on Tuesday, dragging down other tech stocks.
The streaming service said membership grew 5.2 million to 130 million, a million shy of what the company had forecast.
Shares in investment bank Goldman Sachs dropped 1.3 percent after reporting a 44 percent jump in second-quarter earnings to $2.3 billion and announcing that David Solomon would succeed Lloyd Blankfein as chief executive.
- Key figures at 1330 GMT -
New York - Dow: DOWN 0.03. percent at 25,056.74
London - FTSE 100: UP 0.1 percent at 7,606.96 points
Frankfurt - DAX 30: DOWN 0.03 percent at 12,556.71
Paris - CAC 40: DOWN 0.3 percent at 5,394.57
EURO STOXX 50: DOWN 0.3 percent at 3,438.13
Tokyo - Nikkei 225: UP 0.4 percent at 22,697.36 (close)
Hong Kong - Hang Seng: DOWN 1.3 percent at 28,181.68 (close)
Shanghai - Composite: DOWN 0.6 percent at 2,798.31 (close)=
Euro/dollar: DOWN at $1.1696 from $1.1712 at 2100 GMT
Pound/dollar: DOWN at $1.3167 from $1.3237
Dollar/yen: UP at 112.67 yen from 112.27 yen at 2100 GMT
Oil - Brent Crude: UP two cents at $71.86 per barrel
Oil - West Texas Intermediate: DOWN 57 cents at $67.49 per barrel