The European Union’s top trade negotiator has signaled the bloc will continue trying to reach a deal with the U.S. after President Donald Trump threatened a 30% tariff on goods from the bloc and Mexico over the weekend.

Analysts said the muted market response was because many investors expected the levies to settle at lower levels after negotiations.

Gulf equities ended largely subdued on Monday, pressured by renewed tensions in the U.S. tariff war, though some investors hoped President Donald Trump's threats were largely rhetorical.