European Shares Likely To Extend Losses On Growth Concerns

(RTTNews) - European stocks look set to extend losses from the previous session on Friday amid concerns that a trade war could fuel inflation and dent global economic growth.

China, which is facing an aggregate 54 percent tariff vowed retaliation. Canada and the European Union are preparing countermeasures.

French President Emmanuel Macron has called for European firms to suspend planned investment in the U.S. Germany's economy minister has called for strong European response to Trump's tariffs.

The World Trade Organization said it was "deeply concerned", estimating global merchandize trade volumes could shrink by 1 percent this year.

Amid much uncertainty about the outlook for inflation and growth, investors await the monthly U.S. jobs report as well as remarks by Federal Reserve Chair Jerome Powell later in day for further direction.

The European economic calendar remains light, with factory orders and construction Purchasing Managers' survey results from Germany due later in the day.

Asian stocks extended losses in thin trade, with Chinese and Hong Kong markets closed for holidays.

The dollar extended its drop and yields on the 10-year U.S. Treasury hovered around the 4 percent while oil extended losses after tumbling over 6 percent in the previous session following an OPEC+ decision to increase output faster than previously announced.

Gold held steady but was set for a fifth weekly gain. With the chances of a recession in the world's biggest economy rising significantly, money markets now price in a 50 percent chance of the Federal Reserve delivering four quarter-point rate reductions this year.

U.S. stocks nosedived overnight, the dollar experienced its largest single-day decline on record and yields on Treasuries dropped significantly as the announcement of sweeping new tariffs stoked fears of a trade war and the U.S. entering a recession.

A measure of U.S. service sector growth slowed by more than anticipated in March, adding to investor anxiety.

The tech-heavy Nasdaq Composite plummeted 6 percent and the S&P 500 plunged 4.8 percent to reach their lowest levels since last August, while the Dow slumped 4 percent to a nearly seven-month closing low.

European stocks notched their biggest daily loss in eight months on Thursday as Trump announced significantly harsher-than-expected tariffs.

The pan European STOXX 600 tumbled 2.6 percent. The German DAX lost 3 percent, France's CAC 40 declined 3.3 percent and the U.K.'s FTSE 100 gave up 1.6 percent.