Volkswacht Bodensee - Shares slump on Trump tariffs tinkering, jobs

Wall Street started off positively, if gingerly, but soon fell back with the tech-heavy Nasdaq off 1.2 percent some two hours in while the broad-based S&P 500 gave up almost one percent. The Dow was down 0.7 percent.

London just about held the line but in Frankfurt the DAX closed 1.75 percent down and France's CAC 40 lost 1.0 percent.

"US President Trump's bewildering tariff policy is creating heightened uncertainty and investor concern with hedge funds having liquidated global equity positions at the fastest rate on record," noted Axel Rudolph, senior technical analyst at online trading platform IG.

On the currency markets, the euro was set for its best week in more than a decade but the dollar was set to make it five straight weeks of losses after latest data showed the US economy added fewer jobs than expected as Federal government employment declined.

Trump caused disarray on trading floors after he announced Thursday he would delay tariffs on Canadian and Mexican goods covered under a North American trade agreement until April 2, days after they had taken effect following a previous delay.

The decision followed a similar one-month reprieve for automakers following talks with Ford, General Motors and Jeep owner Stellantis.

But Trump has said he will not modify broad tariffs for steel and aluminium imports due to take effect next week, while China was hit with 20-percent tariffs earlier this week.

"Even though Donald Trump has made more goods exempt from tariffs on Canada and Mexico, it's the constant tinkering that's upset investors," noted AJ Bell investment director Russ Mould.

"The fact Trump keeps changing his mind confuses matters as companies have no idea what's going on from one day to the next," he added.

The US jobs data showed the economy adding 151,000 jobs last month, up from January's revised 125,000 figure but fewer than expected by analysts.

The unemployment rate ticked up to 4.1 percent from 4.0 percent.

The report paints a picture of the employment market in the first full month since Trump returned to the White House in January, amid growing blowback over unprecedented cuts to the US government spearheaded by his billionaire adviser Elon Musk.

"Given the headlines around federal employment and worries about the economy, today's jobs report was a huge focus for investors," said Bret Kenwell, US investment analyst at eToro trading platform.

"Until there's more clarity around the current trade war and reassurance around the economy, a 'risk-off' mood can linger on Wall Street," he said.

In Europe, a planned spike in Germany's defence and infrastructure spending was fuelling inflation concerns and putting pressure on the European Central Bank to pause cuts to interest rates.

The ECB on Thursday reduced borrowing costs for the sixth time since June amid a struggling eurozone economy -- though official data Friday showed it grew by 0.9 percent last year, higher than thought.

Japan's Nikkei shares index led losses in Asia, closing down more than two percent.

Chinese markets, which had been riding a wave of stimulus-induced optimism, ended the week modestly lower.

Elsewhere, bitcoin plunged as much as 5.7 percent before rallying slightly after Trump signed an executive order to establish a "Strategic Bitcoin Reserve" without planning any public purchases of the cryptocurrency.

- Key figures around 1655 GMT -

New York - Dow: DOWN 0.7 percent at 42,301.25 points

New York - S&P 500: DOWN 1.1 percent at 5,688.09

New York - Nasdaq: DOWN 1.2 percent at 17,853.50

London - FTSE 100: FLAT at 8,679.88 (close)

Paris - CAC 40: DOWN 1.0 percent at 8,120.80 (close)

Frankfurt - DAX: DOWN 1.8 percent at 23,008.94 (close)

Tokyo - Nikkei 225: DOWN 2.2 percent at 36,887.17 (close)

Hong Kong - Hang Seng Index: DOWN 0.6 percent at 24,238 (close)

Shanghai - Composite: DOWN 0.3 percent at 3,372.55 (close)

Euro/dollar: UP at 1.0857 from 1.0787 on Thursday

Pound/dollar: UP at 1.2914 from 1.2882

Dollar/yen: DOWN 147.07 from 147.97

Euro/pound: UP at 84.08 pence from 83.72 pence

Brent North Sea Crude: UP 1.6 percent at 70.59 per barrel

West Texas Intermediate: UP 1.5 percent at $67.35 per barrel

F.Stadler--VB