Global Markets Under Pressure on Growing Tit-For-Tat Tariff Escalation Fears

By Dow Jones Newswires StaffStock futures began Thursday under pressure again after some respite Wednesday when the S&P 500 and Nasdaq rose following a benign U.S. inflation report. S&P 500 stock futures fell 0.7%. Stock markets in Asia closed lower, while European stock markets opened lower.With the risk of tit-for-tat tariff escalation growing, Europe's Stoxx Europe 600 declined 0.2% in early trade, the CAC 40 decreased 0.5% and Germany's DAX fell 0.7%. The FTSE 100 was flat. In Asia, the Nikkei and South Korea's main index closed 0.1% lower. Of the three main indexes on China's mainland, the Shenzhen and ChiNext closed more than 1% lower while the Hang Seng Index closed down 0.6%.The dollar was steady in early European trading, taking a pause from its recent selloff led by concerns about a slowing U.S. economy. The DXY dollar index, which is measured against a basket of major currencies, was last flat at 103.622, having hit a 20-week low of 103.221 on Tuesday.The 10-year Treasury yield last traded down two basis points at 4.297%.The euro fell after U.S. President Trump said he would respond to the European Union's plans for counter tariffs against a 25% U.S. levy on all steel and aluminum imports. In a meeting with Irish Prime Minister Micheal Martin, Trump said "whatever they charge us with, we're charging them." The euro was last down 0.2% to $1.0865 against the dollar.Eurozone government bond yields were lower in early trade, but near recent highs. Market focus will be on the German Bundestag debate beginning on debt-brake reform. The 10-year Bund yield fell one basis point to 2.884%.Bitcoin fell 0.5% to $82,720, according to LSEG data, as tariffs weighed on risk appetite.Write to Barcelona Editors at [email protected]