Volkswacht Bodensee - Stock markets drop as autos suffer more tariff-fuelled losses

The mood on trading floors has soured in recent weeks as the White House presses ahead with its hardball policy approach that has fuelled recession fears.

"The losses seen throughout Asia and Europe highlight the growing fears as auto tariffs are set to be accompanied by retaliatory measures on the so-called 'Liberation Day' next week," said Joshua Mahony, chief market analyst at Scope Markets.

Paris and Frankfurt stocks dropped, with automakers Volkswagen, Renault and Stellantis, whose brands include Jeep, Peugeot and Fiat, faring particularly badly.

Tokyo's stock market sank 1.8 percent as the world's biggest carmaker Toyota fell, along with Honda, Nissan and Mazda.

Seoul was off 1.9 percent as Hyundai gave up 2.6 percent.

Governments around the world have hit out at Trump's latest tariffs, with Canadian Prime Minister Mark Carney saying the "old relationship" of deep economic, security and military ties with Washington "is over".

Warnings of retaliation have stoked fears of a long-running global trade war and a reignition of inflation that could force central banks to rethink plans to cut interest rates.

Investors will be looking to US personal consumption expenditures data -- the Federal Reserve's preferred gauge of inflation -- later in the day.

News that the US economy expanded at a slightly faster pace than estimated in the final three months of last year did little to stir excitement.

Uncertainty over Trump's plans and long-term intentions has led investors to rush into safe havens such as gold, which hit a new record high of $3,085.96 an ounce on Friday.

Tariff worries also saw Hong Kong and Shanghai stock markets fall.

Bangkok was in the red when trading was suspended as the Thai capital was shaken by a powerful earthquake in neighbouring Myanmar.

London edged up after data showed that the UK economy expanded more than intially estimated last year and retail sales rose.

In Spain, inflation eased in March as rainy weather boosted hydro power production and drove down electricity prices.

Investors also kept tabs on Beijing, where Chinese leader Xi Jinping met leading business leaders pledging the country's door would "open wider and wider".

"China is firmly committed to advancing reform and opening up," Xi told the executives, including hedge fund boss Ray Dalio and Samsung Electronics chief Lee Jae-yong.

He also warned the world trading system was facing "severe challenges".

On currency markets, the yen strengthened against the dollar after a report showing inflation in Tokyo rose more than expected in March, boosting bets on another central bank rate hike.

- Key figures around 1045 GMT -

London - FTSE 100: UP 0.1 percent at 8,676.52 points

Paris - CAC 40: DOWN 0.4 percent at 7,960.02

Frankfurt - DAX: DOWN 0.4 percent at 22,589.84

Tokyo - Nikkei 225: DOWN 1.8 percent at 37,120.33 (close)

Hong Kong - Hang Seng Index: DOWN 0.7 percent at 23,426.60 (close)

Shanghai - Composite: DOWN 0.7 percent at 3,351.31 (close)

New York - Dow: DOWN 0.4 percent at 42,299.70 (close)

Euro/dollar: DOWN at $1.0780 from $1.0796 on Thursday

Pound/dollar: DOWN at $1.2944 from $1.2947

Dollar/yen: DOWN at 150.69 yen from 151.04 yen

Euro/pound: DOWN at 83.29 pence from 83.38 pence

West Texas Intermediate: DOWN 0.2 percent at $69.79 per barrel

Brent North Sea Crude: DOWN 0.2 percent at $73.20 per barrel

T.Egger--VB