NEW YORK (Reuters) – Stocks around the world slid on Monday, along with bond yields, after U.S. President Donald Trump threatened to raise tariffs on China, triggering an investor exodus from risky assets.

But assets such as oil and currencies changed direction as the day wore on as investors were not convinced Trump would follow through with a threat made on Sunday to raise tariffs on $200 billion worth of Chinese goods this week.

All the same, investors reduced their risk exposure, with U.S. Treasury yields lower as investors favored low-risk government bonds over stocks.

Oil futures edged higher in volatile trade as rising tensions between the United States and Iran buoyed prices, which earlier touched a one-month low due to the tweets from Trump.