Stocks on Wall Street were volatile as investors worried about the mounting trade war between the US and its trading partners.

Market snapshot at 8:00am (AEST): ASX SPI 200 futures +0.3pc to 6,158, ASX 200 (Monday's close) -0.3pc at 6,178

ASX SPI 200 futures +0.3pc to 6,158, ASX 200 (Monday's close) -0.3pc at 6,178 AUD: 73.36 US cents, 55.83 British pence, 63.03 euro cents, 81.33 Japanese yen, $NZ1.09

AUD: 73.36 US cents, 55.83 British pence, 63.03 euro cents, 81.33 Japanese yen, $NZ1.09 US: Dow Jones +0.15pc at 24,307, S&P 500 +0.3pc at 2,727, Nasdaq +0.8pc at 7,568

US: Dow Jones +0.15pc at 24,307, S&P 500 +0.3pc at 2,727, Nasdaq +0.8pc at 7,568 Europe: FTSE -1.2pc at 7,548, DAX -0.5pc at 12,238, Euro Stoxx 50 -0.7pc at 3,372

Europe: FTSE -1.2pc at 7,548, DAX -0.5pc at 12,238, Euro Stoxx 50 -0.7pc at 3,372 Commodities: Brent crude -2.2pc to $US77.49/barrel, spot gold flat at $US1,242.17/ounce, iron ore -0.6pc to $US64.18/tonne

US tariffs on $US34 billion ($46.3 billion) worth of Chinese goods come into effect on Friday with a big risk of more tit for tat tariffs from China.

The European Union and Canada have also threatened to impose tariffs on billions of dollars worth of US products.

The EU warned in a 10-page submission to the US Commerce Department that imposing import tariffs on cars and car parts would harm the US automotive industry and may lead to retaliatory tariffs on $US294 billion ($401 billion) worth of US exports, nearly one-fifth of US exports.

The Commerce Department is investigating tariffs on cars and car parts from the EU and other trading partners on the grounds of national security under orders from US President Donald Trump.

The EU has a 10 per cent tariff on cars compared to 2.5 per cent for cars entering the US.

Mr Trump has threatened to impose a 20 per cent levy on cars from the EU.

The EU said in its submission that EU companies make around 2.9 million cars in the US, which supports 120,000 jobs, or 420,000 jobs if car dealerships and car part retailers are included.

It also argued that tariffs on cars and car parts could hurt economic growth in North America, with an estimated initial $US13-14 billion hit on US gross domestic product.

There are already signs in the Asian region that the trade war is starting to hurt.

China, Japan, and South Korea all reported that their export orders eased back in June as trade tensions continue with the US.

The Caixin/Markit Manufacturing Purchasing Managers' Index fell slightly in June in China to 51 as new export orders dropped for the third month in a row.

Brent crude prices slid on more supply from Saudi Arabia and Russia and that pulled down energy stocks.

Oil prices also fell after US President Donald Trump put pressure on Saudi Arabia to increase oil production.

Mr Trump tweeted on the weekend that Saudi Arabia's King Salman bin Abdulaziz Al Saud had agreed to pump more oil, "maybe up to 2,000,000 barrels."

However, the White House later played down Mr Trump's tweet.

Technology shares rose, boosted by Microsoft, Apple and Facebook, which all increased by 1 per cent or more. Investors are expecting strong earnings from the tech sector.

The US Commerce Department said US construction spending increased nearly half a per cent in May, driven by more private sector and government construction projects.

The US manufacturing industry was also stronger in June.

The Institute for Supply Management survey rose from 58.7 to 60.2, just below the fourteen-year high seen in February, thanks to higher production and increased delivery times from suppliers although new orders and employment edged lower.

The ISM said that demand remained strong but supply chains continued to "struggle" because of import tariffs and the robust economy.

It reported that manufacturers were "overwhelmingly" concerned about the impact of the tariffs imposed by the Trump administration on products including steel and aluminium.

Factory activity in the eurozone came in slightly less than expected at 54.9 over the second quarter. New orders, exports and confidence fell.

The Australian dollar slumped nearly 1 per cent overnight to a low of 73.1 as the greenback rose and amid ongoing trade tension.

Coming up today, the Reserve Bank is expected to keep official interest rates on hold for yet another month with the post-meeting statement to be carefully scrutinised.

ANZ economists said they will be looking out for comments from the central bank on demand for loans domestically and rising global risks.

"Overall we expect the RBA to remain upbeat, with 'further progress in reducing unemployment and having inflation return to target' continuing to be the central expectation," said ANZ economist, Joanne Masters.

And the latest building approvals data from the Bureau of Statistics will be out. Westpac forecasts they will fall by 4.0 per cent in May.