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US stocks little changed, European stocks weaker

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Euro lower, Mexican peso sinks after Trump tariff threats

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Data on US inflation, earnings due later in the week

(Updates to late morning of U.S. trading session)

By Sinéad Carew and Nell Mackenzie

NEW YORK/LONDON, July 14 (Reuters) - MSCI's global

equity index edged down on Monday and U.S. Treasury yields edged

higher as the latest U.S. tariff threats kept investors on edge

while they waited for inflation readings and the start of

earnings season due later in the week.

The euro briefly hit an almost three-week low while the

dollar index held steady after U.S. President Donald Trump's

threat to impose a 30% tariff on imports from the European Union

and Mexico from August 1.

European shares fell on Monday after the tariff threat. The

EU said it would extend a suspension of countermeasures to U.S.

tariffs until early August and continue to press for a

negotiated settlement, though Germany's finance minister called

for firm action if the levies went ahead.

The latest tariff salvo comes as U.S. earnings season begins

this week, with the major banks leading the pack. S&P 500

profits are expected to rise 5.8% from the year-ago quarter,

according to LSEG data.

"It's all about earnings season now. People are not sure

what it's going to hold. They want to be optimistic. Usually

earnings season pans out better than expected," said Robert

Pavlik, senior portfolio manager at Dakota Wealth in Fairfield,

Connecticut, but he noted that trading valuations are "a bit

expensive relative to the five-year average."

"That on top of the most recent tariff announcements has

people sort of just waiting on the sidelines," said the money

manager.

On Wall Street at 10:54 a.m. the Dow Jones Industrial

Average fell 53.36 points, or 0.12%, to 44,318.15 while

the S&P 500 fell 6.66 points, or 0.11%, to 6,253.09.

The Nasdaq Composite rose 18.05 points, or 0.09%, to

20,603.58.

MSCI's gauge of stocks across the globe fell

1.07 points, or 0.12%, to 921.49 while the pan-European STOXX

600 index fell 0.26%.

PRESSURING POWELL

While U.S. Federal Chair Jerome Powell has signalled a

patient outlook on interest rate cuts, Trump is piling up

political pressure for more aggressive easing.

White House economic adviser Kevin Hassett over the weekend

warned Trump might have grounds to fire Powell because of

renovation cost overruns at the Fed's Washington headquarters.

Trump said on Sunday that it would be a great thing if

Powell stepped down.

In U.S. treasuries, the yield on benchmark U.S. 10-year

notes rose 1 basis point to 4.433%, from 4.423% late

on Friday while the 30-year bond yield rose 2.2

basis points to 4.9791%.

The 2-year note yield, which typically moves in

step with interest rate expectations for the Federal Reserve,

fell 1.8 basis points to 3.896%, from 3.914% late on Friday.

Besides earnings season, investors are also waiting for U.S.

consumer price data for June, due on Tuesday, and will monitor

for any upward pressure from tariffs.

They will also watch for any tariff impact to supply chain

costs in producer price and import price figures also due this

week along with a view of consumer health in retail sales data.

In currencies, the dollar index, which measures the

greenback against a basket of currencies including the yen and

the euro, rose 0.09% to 97.98.

The euro was down 0.08% at $1.168 while against the

Japanese yen, the dollar strengthened 0.07% to 147.51.

The Mexican peso weakened 0.65% versus the dollar at

18.767, with Mexican President Claudia Sheinbaum confident a

trade deal could be reached before the August deadline.

Bitcoin crossed the $120,000 level for the first time and

was last up 1.48% at $120,891.36.

Oil prices fell on Monday after touching their highest level

in three weeks, as investors eyed further U.S. sanctions on

Russia and the threat of tariffs that may affect global

supplies.

U.S. crude fell 0.64% to $68.01 a barrel and Brent

fell to $70.07 per barrel, down 0.41% on the day.

Gold prices steadied after hitting a three-week peak on

Monday with attention on trade talks and U.S. economic data,

while silver climbed to its highest level since September 2011.

Spot gold fell 0.41% to $3,341.63 an ounce. U.S. gold

futures rose 0.04% to $3,357.20 an ounce.