(New throughout, updates prices, adds fresh analyst comment )

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Wall Street stocks fall

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European stocks lose ground, Asia shares end flat

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Canadian dollar dips after Trump announces tariffs

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Bitcoin hits record high, gold strong

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Oil prices rise more than 2%

By Amanda Cooper, Chibuike Oguh

NEW YORK/LONDON, July 11 (Reuters) - Global equity

markets were lower on Friday as the market's recent optimism was

hemmed in by rising trade tensions following U.S. President

Donald Trump's announcement of tariffs on imports from Canada.

Investors are also bracing for an announcement from Trump of

tariffs on the European Union, a move that will likely trigger a

tit-for-tat response from the bloc and inject fresh market

uncertainty.

Trump said on Thursday the U.S. would impose a 35% tariff on

Canadian imports next month and planned to impose blanket

tariffs of 15% or 20% on most other trading partners.

On Wall Street, all three main indexes were trading lower.

The Dow Jones Industrial Average fell 0.56% to 44,402.79,

the S&P 500 dipped 0.33% to 6,259.89 and the Nasdaq

Composite fell 0.16% to 20,598.48.

Benchmark S&P 500 and the Dow were set to end the week

lower. The Nasdaq was on track for its fourth straight week of

gains.

The indexes posted record closing highs on Thursday as AI

chipmaker Nvidia ( NVDA ) made history, bagging a market

valuation above $4 trillion.

In Europe, the STOXX 600 fell 1% but was up 1% for

the week. Overnight in Asia, MSCI's broadest index of

Asia-Pacific shares outside Japan closed flat,

while Japan's Nikkei fell 0.19%.

"We've been hitting all-time highs in the markets and also

in some other riskier assets so we've been getting investor

euphoria and excitement, with technology and Magnificent Seven

leading the way, partly because of anticipation of earnings next

week," said Wasif Latif, chief investment officer at

Sarmaya Partners in New Jersey.

Trump, whose global wave of tariffs has upended businesses and

policymaking, floated a blanket 15% or 20% tariff rate on other

countries, a step up from the current 10% baseline rate. This

week, he surprised Brazil, which has a trade surplus with the

United States, with duties of 50%, and hit copper,

pharmaceuticals, and semiconductor chips.

Aside from pockets of volatility in target currencies,

stocks, or commodities, markets have offered little reaction to

the tariffs, leaving the VIX volatility index at its

lowest since late February.

"Today, you're seeing a little bit of a pullback because of

the tariffs being announced overnight. It's been three

consecutive days of after-market tariff announcements, and they

seem to be coming relatively randomly, so you don't know what

you're going to get. There's a bit of that nervousness that

might be dampening the excitement today," Latif added.

The Canadian dollar weakened 0.3% versus the

greenback to C$1.37 per dollar.

The dollar strengthened 0.75% to 147.34 against the Japanese

yen but weakened 0.11% to 0.796 against the Swiss

franc. The euro was down 0.07% at $1.1692.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

rose 0.25% to 97.83.

Earlier in the week, Trump pushed back his tariff deadline

of July 9 to August 1 for many trading partners to allow more

time for negotiations, but broadened his trade war, setting new

rates for a number of countries, including allies Japan and

South Korea, along with a 50% tariff on copper.

Joseph Capurso, head of international economics at the

Commonwealth Bank of Australia, said the tariff rate of 35% on

Canada was not as bad as feared because most of the imports are

still subject to exemptions under the United

States-Mexico-Canada Agreement.

Gold prices climbed 1% to a one-week high as investors

rushed toward safe-haven assets amid the trade tensions. Spot

gold rose 1.15% to $3,360.75 an ounce. U.S. gold futures

rose 1.55% to $3,368.90 an ounce.

Treasuries got less of a safe-haven boost, as investor

concern about the fragility of long-term U.S. government

finances prompted a selloff that pushed up yields. The yield on

benchmark U.S. 10-year notes rose 5.7 basis points

to 4.403%.

Oil prices rose about 2% as investors weighed a tight

short-term market against a potential large surplus this

year forecast by the International Energy Agency.

Brent crude futures were up 2.62%, at $70.44 a

barrel. U.S. West Texas Intermediate crude gained 2.84%

to $68.46 a barrel.

Bitcoin was up 3.44% to $117,488.01, after hitting a

new record of $118,832.