U.S. stocks ended their longest winning streak in two months as investors weighed the outlook for trade talks and interest rate policy. Treasuries were steady along with the dollar.

The S&P 500 Index closed slightly lower as a drop in industrial companies weighed on the gauge, which had climbed more than five per cent over the previous five sessions. U.S. President Donald Trump’s threat to raise duties again on China if President Xi Jinping doesn’t meet with him at this month’s Group of 20 summit overshadowed some of the optimism generated by last week’s deal to avoid tariffs on Mexican imports.

Sentiment is still cautious among stock buyers after a horrific month of May for global equity markets, with investors looking to the G-20 summit in Japan as the next possible site for a breakthrough in the trade dispute between the world’s two largest economies. As traders have added bets on lower U.S. interest rates, Trump stepped up his criticism of Fed policy in tweets Tuesday, calling borrowing costs “way too high” amid “VERY LOW INFLATION.”

“We are going to continue to be range-bound,” Joe “JJ” Kinahan, the chief market strategist at TD Ameritrade, said in an interview at Bloomberg’s New York headquarters. “There’s the fear of missing out in case the tariffs situation with China is completely settled, so people don’t want to necessarily sell. Now we’re at the top of the range, and I think we’re going to see people who are hesitant to continue to buy.”

Elsewhere, mining and automobile shares pulled the Stoxx Europe 600 Index higher. Mexico’s peso added to gains after posting its best day in almost a year following the country’s accord with the U.S. late Friday. China’s stocks rallied and the onshore yuan recovered after closing at its weakest level of the year.

Emerging-market stocks and currencies both gained.

Here are some key events coming up:

The U.S. releases consumer prices for May on Wednesday. ECB President Mario Draghi speaks at a conference in Frankfurt on Wednesday. The race to succeed Theresa May heats up with the first Conservative Party leadership ballot Thursday. Euro-area finance ministers meet in Luxembourg Thursday. On the agenda: financial penalties for Italy over its debt load, and the euro-area budget. China and the U.S. release industrial production, retail sales data Friday.

And these are the main moves in markets:

Stocks

The S&P 500 Index fell 0.03 per cent at the close of trading in New York. The Stoxx Europe 600 Index increased 0.7 per cent, in the sixth gain in seven sessions.
The Shanghai Composite Index jumped 2.6 per cent on the biggest surge in more than a month.
The MSCI Emerging Markets Index climbed 1 per cent to the highest in more than a month.

Currencies

The Bloomberg Dollar Spot Index was little changed.
The Japanese yen was little changed at 108.5 per dollar.
The onshore yuan climbed 0.3 per cent, the biggest increase in almost eight weeks.
The MSCI Emerging Markets Currency Index gained 0.3 per cent.

Bonds

The yield on 10-year Treasuries fell one basis point to 2.14 per cent.
Germany’s 10-year yield fell one basis point to -0.23 per cent.
The U.K.’s 10-year yield rose two basis points to 0.86 per cent

Commodities

Gold slipped 0.1 per cent to US$1,326.98 an ounce.
West Texas Intermediate crude rose 0.1 per cent US$53.32 a barrel.

--With assistance from Andreea Papuc, David Wilson, Todd White and Yakob Peterseil.