*

Wall Street futures fall after Trump refuses to rule out

recession risks

*

Chinese consumer prices decline at fastest pace in 13

months in

February

*

US Treasury yields drop, crude oil rises as tariffs sow

uncertainty

By Nell Mackenzie and Kevin Buckland

LONDON, March 10 (Reuters) - Wall Street futures looked

to open lower on Monday, declining alongside world stocks as

building deflationary pressure in China added to growth worries

from a lacklustre U.S. economy and an escalating global trade

war.

Dow E-minis were last down 1.12%, S&P 500 E-minis

were down 1.37%, and Nasdaq 100 E-minis NQcv1 were down

1.65% as world stocks fell 0.3% to their lowest

level in almost two months.

European shares also flirted with month lows. Europe's

broader STOXX 600 regional benchmark fell by as much as

around 1%, just as a gauge of equity volatility nudged

up to a fresh 4-month high above 26 points.

"This week is a big week. We have some massive policy

decisions coming up that potentially define not only the next

quarters but possibly the years to come," James Rossiter, head

of global macro strategy at TD Securities, said.

Stock investors were holding back because of a lack of

conviction amid the uncertainty, Rossiter added.

European Union finance ministers this week are set to

discuss how to pay for defence through new joint borrowing,

existing EU funds and a greater role for the European Investment

Bank.

German leaders agreed last week to overhaul state borrowing

rules to boost defence spending and also set aside 500 billion

euros ($541 billion) for infrastructure investments over 10

years.

Investors looked ahead to Germany's inflation figures later

this week, a reading that comes as European Union trade tensions

with the United States simmer.

In the U.S., Federal Reserve speakers scheduled to speak

include Chair Jerome Powell on the U.S. economic outlook.

China's consumer price index fell at the sharpest pace in 13

months in February, data showed, while producer price deflation

persisted in the latest hit to consumer confidence in the

world's second-biggest economy.

China's blue-chip CSI300 Index closed 0.4% lower,

while the Shanghai Composite Index eased 0.2%. Hong

Kong's benchmark Hang Seng fell 1.9%.

The yen strengthened 0.7% to 146.975 per dollar.

Beijing pledged more stimulus to boost consumption and

foster innovation in artificial intelligence at the start of the

week-long National People's Congress meeting that runs until

Tuesday.

'CAVALIER APPROACH'

U.S. President Donald Trump in a Fox News interview on

Sunday declined to predict whether his tariffs on China, Canada

and Mexico would result in a U.S. recession.

A run of soft U.S. economic data continued on Friday after

monthly figures showed the labour market created fewer jobs than

expected in February, in the first payrolls report capturing

Trump's policies.

"I think it's Trump's cavalier approach to economic policy

that's rattling sentiment," Kyle Rodda, senior financial markets

analyst at Capital.com, said.

"Unlike during his first administration, where signs of an

economic slowdown or market correction would see a pivot on

policy, he is genuinely focused on significant, structural

change to the economy - even if it comes at the expense of

short-term growth."

The 10-year U.S. Treasury yield dropped 7 basis

points to 4.2474% and the two-year yield fell 6 bps

to 3.945%.

The U.S. dollar index, which measures the currency

against six others, was steady at 103.79.

The euro steadied to $1.0841 and sterling

was little changed at $1.2926.

In his latest warning to Canada, Trump said on Friday that

reciprocal tariffs on dairy and lumber could be imminent.

"For those struggling to keep up, that means that Canadian

tariffs were imposed on Tuesday, tweaked on Wednesday, delayed

on Thursday, then expanded again on Friday," Michael Brown,

senior research strategist at Pepperstone, said.

"In that sort of an environment, it is frankly impossible

for any market participant to price risk."

The U.S. president also said he is strongly considering

sanctions on Russian banks and tariffs on Russian products to

try and bring a speedy end to the war in Ukraine.

Crude oil rose with both Brent up 44 cents to $70.70

while U.S. West Texas Intermediate crude climbed by 51

cents to $67.55 a barrel.

Cryptocurrency bitcoin lost as much as 7.2% from

Friday to reach its lowest this month at $80,085.42, and was

last at $82,982.

The long-awaited executive order on creating the a strategic

reserve of cryptocurrencies came on Friday, but disappointed

many investors by saying there would be no additional buying of

bitcoin.