By Avantika Chilkoti 

U.S. stocks opened lower Monday, as investors continued to weigh the impact of souring U.S.-China trade negotiations.

The Dow Jones Industrial Average fell 117 points, or 0.4%, to 25646 shortly after the opening bell. The S&P 500 dropped 0.6% and the Nasdaq Composite declined 1.2%.

In Europe, the Stoxx Europe 600 was down 1.1% in midmorning trading. In Asia, the Shanghai Stock Exchange dropped 0.4% and Hong Kong's Hang Seng Index fell 0.6%. Japan's Nikkei gained 0.2%.

Tensions between the U.S. and China have heated up over the past week amid tit-for-tat tariff increases from both sides, even as negotiators continued to try to thrash out a deal.

Trevor Gurwich, a senior portfolio manager at American Century Investments, said many investors have been surprised by the reemergence of tensions between the world's two largest economies.

"The market is too sanguine about expecting a quick, easy trade deal," he added, pointing to the complexity of the negotiations, which could cover issues like intellectual property law.

At this stage, the main issue is gauging the impact of fresh uncertainty on the global economy through weakened sentiment and via financial markets, according to Marco Valli, head of macro research at UniCredit, rather than the direct impact of lower global trade.

The 10-year U.S. Treasury yield on Monday ticked down to 2.387%, from 2.396% on Friday. Yields move inversely to prices. German 10-year government bonds were in negative territory at -0.098%.

Shares of the Sprint rose 24% after FCC Chairman Ajit Pai recommended approval of the company's merger with T-Mobile US Inc. Shares of T-Mobile were up 5%.

Shares in Germany's largest lender Deutsche Bank briefly dropped below an all time low and were down 3% after analysts at UBS recommended investors sell the stock, setting a price target of EUR5.70 ($6.36), compared with a price of EUR6.73 ($7.51) on Monday.

The transportation and technology services sectors also dragged European markets lower on Monday. Ryanair dropped 3.7% after the Dublin-based carrier posted disappointing earnings.

Meanwhile, India's benchmark Sensex equities index was up 3.8% and the rupee gained 0.8% on the dollar after exit polls released Sunday showed Prime Minister Narendra Modi is likely to return for another five years at the helm of the world's second most populous nation.

This week, investors will be watching for data on U.S. home sales and eurozone purchasing managers surveys on Thursday.

Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com

(END) Dow Jones Newswires

May 20, 2019 09:50 ET (13:50 GMT)