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Wall Street futures fall after Trump refuses to rule out

recession risks

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Chinese consumer prices decline at fastest pace in 13

months in

February

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US Treasury yields drop, crude oil declines as tariffs sow

uncertainty

By Kevin Buckland

TOKYO, March 10 (Reuters) - Wall Street futures sank and

the safe-haven yen and Swiss franc strengthened early on Monday

as building deflationary pressures in China added to growth

worries from a fading U.S. economy and an escalating global

trade war.

U.S. S&P 500 stock futures pointed 0.5% lower and

Nasdaq futures sagged 0.6% as of 0137 GMT.

Hong Kong's Hang Seng eased 0.1%, as did an index of

mainland Chinese blue chips.

Taiwan's equity benchmark slipped 0.4%, although

Japan's Nikkei was 0.2% higher after flipping between

small gains and losses.

The yen strengthened some 0.6% to 147.245 per

dollar, while the franc rose 0.4% to 0.8773 per

dollar.

Data on Sunday showed China's consumer price index fell at

the sharpest pace in 13 months in February, while producer price

deflation extended to a 30th straight month.

Beijing pledged more stimulus to boost consumption and

foster innovation in artificial intelligence at the start of the

week-long National People's Congress meetings that run until

Tuesday.

Elsewhere, 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 last month, in the first payrolls report capturing

Trump's policies.

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

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

markets analyst at Capital.com.

"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."

U.S. Treasury yields slid, with the 10-year yield

dropping as much as 6 basis points (bps) to 4.257%

and the two-year yield dipping 4.5 bps to 3.956%.

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

against six major peers, eased 0.1% to 103.59.

The euro gained 0.3% to $1.0866 and sterling

rose 0.2% to $1.2946.

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

reciprocal tariffs on dairy and lumber could be imminent.

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.

That has dragged on crude oil, with Brent down 0.4%

at $70.11 a barrel on Monday and U.S. West Texas Intermediate

crude down by a similar margin to $66.76 a barrel.

Gold, another traditional haven asset, added 0.15% to

$2,915 an ounce.

Cryptocurrency bitcoin lost as much as 7.2% from

Friday to reach the lowest this month at $80,085.42.

Optimism about looser regulation and the creation of a

cryptocurrency reserve under Trump lifted the token to an

all-time high of $109,071.86 in January, but it has struggled

since.

The long-awaited executive order on creating the reserve

came on Friday, but disappointed many investors by saying there

would be no additional buying of bitcoin.