The yen tumbled against the US dollar on Monday as Japan signalled it was ready to intervene in the currency market, while a drop in oil prices undercut stocks.
US stock indexes were little changed as the energy sector fell 1.5 per cent. Europe's broad stock index gained, supported by a 1.1-per cent rise for Germany's DAX index amid positive news for the country's economy.
US Treasury yields fell as investors lowered estimates that the Federal Reserve will raise interest rates in June, after Friday's weaker-than-expected April jobs report.
“Today, really you're seeing just that back-and-forth that has been here for months: very tight ranges, modest movements and just a mix between uncertainty and having such low interest rates that there isn't somewhere else to go,” said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey.
“There isn't a lot of conviction on the part of global investors for any of the asset classes,” Meckler said.
The Dow Jones industrial average was falling 39.1 points, or 0.22 per cent, at 17,701.53, while the S&P 500 was gaining 3.1 points, or 0.15 per cent, at 2,060.24. The Nasdaq Composite was adding 24.26 points, or 0.51 per cent, at 4,760.42.
The benchmark S&P 500 is up slightly in 2016 after recovering from a rough start to the year, with volatility in oil prices causing jitters in other markets.
“To break out and rally above the recent highs, we need oil to stabilize in the $40 to $60 range,” said Jack DeGan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.
Europe's broad FTSEurofirst 300 index climbed 0.5 per cent.
China's exports and imports fell more than expected in April, underlining weak demand at home and abroad.
Brazil's benchmark Bovespa stock index fell 1.4 per cent, while its currency weakened 0.8 per cent against the dollar, as the acting speaker of Brazil's lower house of Congress annulled the impeachment process against President Dilma Rousseff.
MSCI's world equity index slipped 0.1 per cent after posting its worst weekly performance since mid-February last week.
The US dollar gained 1.3 per cent against the yen
Japanese Finance Minister Taro Aso said Tokyo is ready to intervene if yen moves are volatile enough to hurt the country's trade and economy.
The Japanese currency last week had hit a 1-1/2 year high against the greenback.
“There is a risk of either currency intervention or BOJ (Bank of Japan) monetary policy easing in the months ahead, a risk that is, at least for now, keeping the yen's upside limited,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
Against a basket of currencies, the dollar gained 0.3 per cent.
Oil prices fell as traders took in their stride the impact of wildfires on Canada's oil output and after another inventory build at the US hub for crude futures delivery.
US crude settled down 2.7 per cent at $43.44 a barrel, while benchmark Brent settled off 3.8 per cent at $43.63 a barrel. Oil prices have recovered some ground after touching 12-year lows earlier in 2016.
US Treasury yields fell as investors evaluated when the Fed is likely to raise rates.
Benchmark 10-year notes were last up 5/32 in price to yield 1.7595 per cent, down from 1.777 per cent late on Friday.
Copper prices fell 2.6 per cent as weak trade data from China highlighted poor demand growth prospects.