Global Markets Under Pressure Amid Trade War Fears

Global stocks and U.S. futures declined as escalating trade tensions overshadowed recent gains spurred by soft U.S. inflation data. The pan-European STOXX 600 index fell slightly, and U.S. markets faced uncertainty due to President Trump's tariff policies impacting growth outlooks and investments. Markets are closely watching further economic indicators.

European and U.S. stock markets tumbled on Thursday, reigniting concerns over a continuing global trade war. This came on the heels of a brief market rally prompted by unexpected U.S. inflation data.

Asian markets also saw declines, with the Hang Seng and Nikkei indices reversing earlier gains, as the financial world grappled with the implications of the U.S. trade policies. Gold prices surged, nearing a historic peak, reflecting a flight to safety by weary investors.

U.S. tariffs, set in motion by President Trump's policies, have injected volatility and worry into global markets. Despite these challenges, certain European stocks remain buoyant, buoyed by government defense expenditure and potential diplomatic developments regarding Ukraine. The financial sentiment remains cautious, with key economic data still in the spotlight.

(With inputs from agencies.)