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European stocks, US futures fall

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Dollar up 0.2% versus Canadian currency, euro off 0.1%

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Bitcoin hits record high, gold strong

(Updates prices)

By Stella Qiu and Amanda Cooper

SYDNEY/LONDON, July 11 (Reuters) - Global stocks fell on

Friday after U.S. President Donald Trump intensified his tariff

war against Canada, leaving Europe squarely in the firing line,

sparking a modest investor push into safe havens such as gold.

The Canadian dollar fell after Trump issued a letter late on

Thursday that said a 35% tariff rate on all imports from Canada

would apply from August 1. The European Union was set to receive

a letter by Friday.

The U.S. president, 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 in the way of

reaction to the onslaught, leaving the VIX volatility index

at its lowest since late February.

In Europe, the STOXX 600, which has risen 2% this

week, fell 0.8%. Futures on the S&P 500 and the Nasdaq

fell 0.4-0.5%, pointing to a retreat from this week's

record highs at the open later.

"The market is becoming a bit numb to these (tariff)

announcements, and perhaps it's not until we see hard data

showing an impact that we (will) start to see the market

reacting," City Index strategist Fiona Cincotta said.

"Obviously, we're getting more information through that does

bring with it an element of clarity. Because there is so much

uncertainty, there is still this idea that Trump could be open

to negotiation, nothing feels 'final' still," she said.

The dollar rose as much as 0.5% earlier against the Canadian

dollar before retreating to C$1.3697, up 0.2% on the

day. The euro, which has lost nearly 1% in value since

the start of July, was down 0.1% at $1.1694.

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 (USMCA).

"Now the tariff rate on imports from the EU ... That's what

we don't know as yet," Capurso said. "If you get something

similar to (the U.S.-China trade war in April), that's going to

be very destabilising."

Wall Street indexes posted record closing highs on Thursday

as AI chip maker Nvidia ( NVDA ) made history, bagging a market

valuation above $4 trillion.

Gold rose for a third day in a row, up 0.8% to $3,348

an ounce, bringing gains for July so far to 1.2%. 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 yields up.

Benchmark 10-year yields rose 3.7 basis points

to 4.384%, adding to Thursday's rise on the back of data that

showed jobless claims unexpectedly fell last week.

The yen, which also typically behaves like a safe haven, has

been steadily weakening as the prospects dim for a U.S.-Japan

trade deal. The dollar was up 0.45% on Friday at 146.93 yen

, set for a weekly gain of 1.6%, the biggest this year.

Bitcoin rose as much as 4.6% to a new record of

$118,832.

Investors will be watching second-quarter corporate earnings

next week to gauge the impact of Trump's tariffs from April 2.

JPMorgan Chase ( JPM ) is due to release results on Tuesday,

essentially kicking off the reporting period.

Oil prices rose nearly 1%, partially reversing the previous

day's losses, to leave Brent crude at $69.3 a barrel.