GLOBAL MARKETS-Global equities mixed on uncertainty about Trump moves, geopolitics

New throughout, updates with U.S. markets, adds analyst comment

By Chibuike Oguh

NEW YORK, Feb 21 (Reuters) - Stocks fell on Wall Street but edged higher in Europe on Friday amid uncertainty about U.S. President Donald Trump's rapid policy initiatives, including spending cuts and tariffs, and Germany's upcoming elections.

Trump has announced tariffs on several major U.S. trading partners since returning to the White House last month and unleashed a campaign to slash the 2.3 million-strong federal workforce, moves that have sparked worries among traders.

"The sell-off in the last couple of days has really been about the uncertainty with the pace of change in the government," said Joshua Wein, portfolio manager at Hennessy Funds in Chapel Hill, North Carolina.

"We all knew there would be spending cuts and layoffs of employees, but the pace at which that is happening has given the market a new type of uncertainty that we haven't seen before."

Data released on Friday showed U.S. business activity tumbled to a 17-month low, indicating that businesses and consumers were becoming increasingly rattled by the Trump administration's policies.

The benchmark S&P 500, Dow Jones Industrial Average and Nasdaq Composite Index fell on losses in industrials, consumer discretionary and energy stocks. The three main indexes were also set to end the week lower.

In Europe, shares have been volatile this week ahead of Germany's election on Sunday. Europe's broad Stoxx 600 .STOXX climbed 0.45%, reversing two days of declines and heading towards a weekly gain.

The Dow .DJI dropped 0.85% to 43,799.85, the S&P 500 .SPX fell 0.57% to 6,082.56 and the Nasdaq Composite .IXIC slid 0.69% to 19,823.69.

MSCI's gauge of stocks across the globe .MIWD00000PUS fell 0.23% to 881.69. The index is down 0.25% for the week. Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS jumped 1.45% to its highest since November 8.