*

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 on Monday as

building deflationary pressures in China added to growth worries

from a lacklustre 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 0609 GMT.

Hong Kong's Hang Seng slumped 1.8%, and an index of

mainland Chinese blue chips eased 0.7%.

Taiwan's equity benchmark slipped 0.5%, although

Japan's Nikkei was 0.4% higher after flipping between

small gains and losses.

The yen strengthened some 0.3% to 147.605 per

dollar, while the franc firmed 0.2% to 0.8780 per

dollar.

European markets offered a bright spot though, with

pan-European STOXX 50 futures pointing up 0.55%.

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 meeting that runs 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 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," 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 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, added 0.1% to 103.82, reversing earlier

small losses.

The euro edged up slightly to $1.0839 and sterling

was little changed at $1.2917.

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," said Michael Brown,

senior research strategist at Pepperstone.

"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.

That has dragged on crude oil, with Brent down 0.5%

at $69.99 a barrel and U.S. West Texas Intermediate crude

down by 0.6% at $66.63 a barrel.

Cryptocurrency bitcoin lost as much as 7.2% from

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

last at $82,280.

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.

(Reporting by Kevin Buckland; Editing by Jamie Freed, Shri

Navaratnam and Lincoln Feast.)