LONDON/SINGAPORE, March 7 (Reuters) – European and Asian stocks experienced a decline on Friday as investors remained uneasy following a week of confusion over U.S. trade policy and rising global borrowing costs. However, the steep selloff in bonds showed signs of easing. A sharp drop in eurozone government bond markets, triggered by Germany’s planned large spending package, began to taper. Following the largest two-day fall in Bunds since the 1970s, the benchmark 10-year bond yield, which moves inversely to prices, decreased by 5 basis points to 2.84%. The euro saw its best week since 2009 due to rising borrowing costs in the eurozone. Financial markets awaited the U.S. non-farm payrolls report and a speech by Federal Reserve Chair Jerome Powell, which could clarify interest rate outlooks for the world’s largest economy. President Trump suspended tariffs of 25% on most goods from Canada and Mexico, adding to the fluctuating trade policy that has unsettled markets. Deutsche Bank analysts noted ongoing tariff uncertainty. U.S. stock futures regained some ground, with Nasdaq futures rising 0.3% and S&P 500 futures adding 0.2%. Despite this, the overall market mood remained risk-off. Government bonds in other regions continued their selloff, with the 10-year Japanese government bond yield reaching its highest level since June 2009. Riskier currencies like the Australian dollar fell, while safe havens such as the yen and Swiss franc were in demand. Gold hovered near a record high. The European Central Bank cut interest rates again but warned of significant uncertainty, including inflation risks from trade tensions and defense spending. Bitcoin slightly declined to $88,439 after Trump signed an executive order to establish a strategic bitcoin reserve. — news from Reuters
