TOKYO/LONDON: European stocks and US futures slipped as investors turned their attention to escalating global trade tensions, following a mild rally from softer-than-expected US inflation data.
Asian stocks fell after initial gains, while gold rose to within $10 of its record high, and the yen strengthened.
The pan-European STOXX 600 index dipped in early trading after rising 0.81% on Wednesday, with Germany’s DAX down 0.62%. Futures pointed to a lower start for Wall Street, with S&P 500 futures down 0.54% and Nasdaq futures down 0.78%.
In Asia, Hong Kong’s Hang Seng fell 0.58%, and Japan’s Nikkei gave up gains of 1.4% to trade 0.1% lower.
Global stocks have stumbled recently, led by US equities, due to uncertainty surrounding President Trump’s inconsistent tariff policies, which are affecting growth concerns among companies and investors. However, beaten-down US tech shares led a rebound on Wall Street on Wednesday after US consumer prices rose at the slowest pace since October.
Investors are watching US producer price data, with tariffs continuing to be a key concern. “Markets are still being driven by Trump tariffs and US growth concerns,” said Mohit Kumar, chief European economist at Jefferies.
Trump’s increased tariffs on all US steel and aluminium imports took effect Wednesday, escalating his campaign to reorder global trade in favour of the US, drawing retaliation from Canada and Europe.
Gold rose for the third straight session, hitting $2,947, nearing its record high of $2,956.15 from February 24. The US S&P 500 is down almost 5% for the year, while European stocks have performed better, up 6.6% despite recent slippage.
"The market simply cannot hold onto any gains at the moment," said Michael Brown, senior research strategist at Pepperstone.
The yen strengthened about 0.3% to 147.83 per dollar due to bets on Bank of Japan rate hikes and as investors sought a safe haven. The euro edged down 0.1% to $1.0879, retreating from a five-month high.
Germany’s parliament will hold a session to debate a 500 billion euro infrastructure fund. US Treasury yields remained steady, with the 10-year yield flat at 4.318%.
Crude oil ticked higher after Wednesday’s rally, with Brent futures up 0.3% to $71.15 a barrel.— Reuters
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