US indices trim losses at close as trade tensions ease

US stock indices pared losses on Monday, buoyed by strong economic data and easing trade tensions after Washington and Mexico reached an agreement on border security.

The Dow Jones closed lower by 0.3%, or 122 points, at 44,421, after the industrial index approached 43,879 points.

The S&P 500 dropped by nearly 0.75%, or 45 points, at 5,994, while the Nasdaq Composite lost 1.2%, or 235 points, to close at 19,391.

The STOXX Europe 600 index retreated by 0.85% to 534.8 points, amid sector losses led by automotive, banking, and technology.

Meanwhile, the German DAX index declined 1.4% to 21,428 points. The British FTSE index fell by more than 1% to 8,583 points, while the French CAC index lost 1.2% to 7,854 points.

In Japan, the Nikkei index plunged by 2.65%, or 1,052 points, to 38,520, while the broader TOPIX fell by 2.45% to 2,720 points.

In the oil market, futures prices for standard Brent crude for April delivery rose by 0.4%, or 29 cents, to $75.96 a barrel, after hitting $77.34.

US Nymex crude futures for April delivery gained 0.9%, or 63 cents, to $73.16 per barrel, after rising to $75.18 during the session.

Gold futures prices for delivery in April edged up 0.8%, or $22.1, to $2,857.10 per ounce, a record high for the yellow metal.

Data from the Institute for Supply Management showed US manufacturing activity expanded in January for the first time in 26 months, as new orders and production increased amid rising economic confidence.