*

S&P 500 futures rise about 1%, euro firm above $1.08

*

Traders brace for news on tariff barrage

*

PMIs, US PCE, China earnings in focus

(Adds quote in paragraph 8, updates prices throughout)

By Nell Mackenzie and Tom Westbrook

LONDON/SINGAPORE, March 24 (Reuters) - European shares

rose on Monday on upbeat German data and U.S. stock futures and

the dollar firmed at the start of a data-driven week, although

the threat of U.S. tariff hikes made investors cautious.

The pan-European STOXX 600 steadied by 0955 GMT

with German and French indices both up 0.3% and

0.1% respectively, after data showed Germany's manufacturing

production increased for the first time in almost two years.

S&P 500 futures were up about 1% and Nasdaq 100

futures rose 1.2%.

This week's data releases include global purchasing

managers' survey, the U.S. Federal Reserve's preferred inflation

reading, inflation data in Australia and Japan, a budget update

in Britain and major earnings in China.

While the word 'stagflation' has not explicitly been

mentioned, "it is clear from central bank forecast projections

(except for the Swiss National Bank) that higher inflation and

weaker growth are complicating the policy outlook," Bank of

America Global Research strategist, Kamal Sharma, said in a

note.

But it is likely to be updates on U.S. President Donald

Trump's plans for global reciprocal tariffs from April 2 that

drive markets, and after a volatile month for stocks, bonds and

currencies, analysts said there is no obvious trade ahead.

"It's very difficult to really devise a structural

playbook," said Chris Weston, head of research at Pepperstone.

"You've got to put your mind into the head of the consumer

and households," he said, since it has been fears of a slowdown

in the world's biggest economy that has led to weeks of selling

dollars and stocks and a strong rally for Treasuries.

"Anything that feeds into this higher probability of

recession, higher probability of a stagflationary environment

... or that price pressures aren't transitory is where we start

to get panicky a bit."

Trump has vowed to impose a complicated barrage of tariffs

next week, the details of which are not clear save that they are

to be calculated to reflect the impact of foreign tariffs as

well as foreign value-added taxes on imports.

The S&P 500 eked out a gain on Friday after Trump

hinted at flexibility, but after a rollercoaster first two

months in power - including tariff hits on China, Mexico and

Canada - traders are shy of betting that Trump is ready to cut

deals.

Ten-year U.S. Treasury yields have fallen 38

basis points from mid-February highs to sit at 4.28%, last up

about 3 basis points.

Japan's Nikkei ended Asia trading down 0.2% while

stocks in Hong Kong finished up 0.9% and China's blue

chip index finished up 0.5%.

In emerging markets, Indonesia's fragile stock market

hit its lowest level since 2021, last down 1.2% while

Turkey's lira was on a knife edge as the jailing of

President Tayyip Erdogan's main rival has unsettled investors.

Hong Kong shares are up about 18% so far this year, the

largest gain of any major market, but a drop of 4.4% over two

sessions late last week pointed to a pause in the flow of money

while traders consider their - and Trump's - next moves.

Earnings at Chinese automaker BYD, video

platform Kuaishou ( KUASF ) as well as Chinese banks and several

property developers will be in focus. Shares in China's largest

food delivery firm Meituan ( MPNGF ) fell 3% after it posted

revenue more or less in line with estimates on Friday.

In the U.S., discount retailer Dollar Tree ( DLTR ) and

up-market athletic clothier Lululemon are on the

calendar.

Gold steadied shy of last week's record high, buying

$3,024 an ounce, while bitcoin rose 2.4% to $87,161.

"Cash and safe havens remain the counterbalance to any

larger shift in strategy," said Bob Savage, head of markets

macro strategy at BNY in a note to clients.

"We expect a series of diplomatic meetings to avert extreme

tariffs eventually, but not by April, leaving the sequencing

concerns over Trump's policy shifts continuing to move markets

with ongoing economic uncertainty."