Stocks mostly fall as Trump ramps up tariff threats
Trump dampened earlier optimism by firing off more than 20 letters to governments outlining new tariffs if agreements are not reached by August 1.
Bitcoin meanwhile pushed on with its climb, reaching an all-time high above $118,000.
The dollar was mostly higher against its main rivals, and oil prices gained.
"The optimism from earlier in the week... is giving way to fears of an impending tariff surprise as the weekend approaches," said Jochen Stanzl, chief market analyst at CMC Markets.
Wall Street's three main indices fell at the start of trading, with the S&P 500 and Nasdaq Composite coming off record-setting sessions.
In Europe, where investors were awaiting news of Trump's new tariff level targeting the European Union, with a letter expected by the end of the week, the Paris and Frankfurt stock markets each dropped 0.8 per cent.
"The fallout hasn't been more pronounced because the market still continues to view all of this as a point of negotiating leverage," said analyst Patrick O'Hare of Briefing.com.
Trump dialled up his trade war rhetoric on Thursday, warning that Canada faced a 35-per cent tax, while other countries would be handed blanket tariffs of up to 20 per cent, from the current 10 per cent.
That came after he outlined plans to impose 50-per cent tariffs on copper imports, while threatening 200-per cent levies on pharmaceuticals, and hit Brazil with a new 50-per cent charge.
The moves are the latest by the White House in a campaign it says is aimed at ending decades of the United States being "ripped off".
Trump's initial bombshell announcement of tariffs on April 2 sent markets into turmoil until he paused them for three months, and the latest measures have had less impact.
London's FTSE 100 and the pound retreated after data showed the UK economy unexpectedly shrank in May -- its second consecutive monthly decline.
That followed a mixed session in Asia, where Hong Kong rose, Tokyo fell and Shanghai flattened by the close.
Shares in BP jumped 2.4 per cent in London after the energy giant said it expected to report higher oil and gas production for its second quarter. - AFP
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