Stocks, bitcoin down as Trump policies roil markets

LONDON: Global stock markets tumbled and the dollar retreated on Friday as uncertainty over US President Donald Trump's trade policies roiled markets and traders awaited key US jobs data.

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Bitcoin plunged as much as 5.7 per cent after Trump signed an executive order to establish a “Strategic Bitcoin Reserve” without planning any public purchases of the cryptocurrency.

The unit recovered somewhat to trade down around one per cent lower.

European and Asian equities were in the red despite Trump's move Thursday to delay tariffs on Canadian and Mexican goods covered under a North American trade agreement until April 2. The halt offers temporary relief to automakers.

But Trump has said he will not modify broad tariffs for steel and aluminium imports, which are due to take effect next 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 euro continued to win strong support as a planned spike in Germany's defence and infrastructure spending fuels inflation concerns and puts pressure on the European Central Bank to pause cuts to interest rates.

The ECB on Thursday reduced borrowing costs for a fifth meeting in a row amid a struggling eurozone economy.