(Updates prices to late afternoon, adds market details)

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US stocks inch higher, European stocks end lower

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Euro lower, Mexican peso sinks after Trump tariff threats

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Oil ends lower on uncertainty around tariffs, Russian

sanctions

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Data on US inflation, earnings due later in the week

By Sinéad Carew, Nell Mackenzie

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

equity index edged up 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.

Trump said he was open to discussions while the European Union

accused the U.S. of resisting efforts to strike a trade deal and

warned of countermeasures if no agreement is reached.

Meanwhile, U.S. earnings season, is set to begin on Tuesday,

with second-quarter reports from major banks. S&P 500 profits

are expected to rise 5.8% year-over-year, according to LSEG

data. The outlook has dimmed sharply since the early April

forecast of 10.2% growth, before Trump launched his trade war.

"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 2:39 p.m. EDT, the Dow Jones Industrial

Average rose 68.28 points, or 0.15%, to 44,439.79 while

the S&P 500 rose 11.67 points, or 0.19%, to 6,271.43 and

the Nasdaq Composite rose 68.78 points, or 0.33%, to

20,654.31.

MSCI's gauge of stocks across the globe rose

0.86 point, or 0.09%, to 923.42.

Earlier, the pan-European STOXX 600 index ended off

0.06%, above its session lows.

PRESSURING POWELL

Trading in long-dated U.S. Treasuries was choppy, with

yields touching multiweek peaks as investors weighed the

prospect of an exit by Federal Reserve Chairman Jerome Powell.

While Powell has indicated a patient stance on interest rate

policy until the impact of tariffs is clearer, Trump has been

pushing for aggressive easing. Trump said on Sunday that it

would be great if Powell stepped down.

White House economic adviser Kevin Hassett warned that Trump

might have grounds to fire Powell because of renovation cost

overruns at the Fed's Washington headquarters.

The yield on benchmark U.S. 10-year notes rose

0.6 basis point to 4.429%, from 4.423% late on Friday.

The 30-year bond yield rose 1.6 basis points to

4.9729% from 4.957% late on Friday.

The 2-year note yield, which typically moves in

step with interest rate expectations for the Federal Reserve,

fell 1.4 basis points to 3.9%, 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 euro was down 0.16% versus the U.S.

dollar at $1.167 while against the Japanese yen, the

dollar strengthened 0.22% to 147.72.

The Mexican peso weakened 0.39% versus the dollar at

18.719, with Mexican President Claudia Sheinbaum on Monday

hitting back at U.S. criticism that her government was not doing

enough to combat fentanyl trafficking. She called for the U.S.

to do more to arrest drug traffickers on its own turf and stop

the flow of weapons south across the border.

Sterling was down 0.5% at $1.3432 after Bank of England

Governor Andrew Bailey said uncertainty weighs on growth

expectations, in a letter to G20 finance ministers and central

bank governors, urging vigilance against the risk of disruptive

market moves.

Oil prices fell as investors worried about U.S. trade policy

and after Trump gave Russia 50 days to avoid new sanctions and

threatened sanctions on buyers of Russian oil.

U.S. crude settled down 2.15% or $1.47 at $66.98 a

barrel and Brent finished at $69.21 per barrel, down

1.63%, or $1.15.

Bitcoin was last up 0.67% at $119,924.23 after earlier

crossing the $120,000 level for the first time.

Gold prices eased after hitting a three-week peak on Monday

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

while silver pared gains after hitting its highest level in

almost 14 years earlier in the day.

Spot gold fell 0.17% to $3,349.80 an ounce. U.S. gold

futures fell 0.15% to $3,351.00 an ounce. Spot silver

was flat at $38.36 per ounce, after earlier hitting its

highest level since September 2011.