North American markets swung back from deep losses sustained after U.S. President Donald Trump threatened to escalate a trade war with China.

The S&P/TSX composite index closed down less than a point at 16,493.46 after initially falling by 167 points or one per cent.

In New York, the Dow Jones industrial average was down 66.47 points at 26,438.48. The S&P 500 index was down 13.17 points at 2,932.47, while the Nasdaq composite was down 40.71 points at 8,123.29.

The Canadian dollar traded at an average of US74.32¢ compared with an average of US74.47¢ on Friday.

The June crude contract was up 31¢ at US$62.25 per barrel and the June natural gas contract was down 4.3¢ at US$2.52 per mmBTU.

The June gold contract was up $2.50 at US$1,283.80 an ounce and the July copper contract was up 1.05 cents at US$2.83 a pound.