GLOBAL MARKETS-Stock futures dip after Trump slaps tariffs on Canada; dollar up

By Stella Qiu

SYDNEY, July 11 (Reuters) - U.S. and European stock futures dipped in Asia on Friday after President Donald Trump stepped up tariff threats against Europe and Canada, restraining a broad rally in regional share markets.

The dollar gained on the euro and the Canadian currency as Trump issued a letter late on Thursday that a 35% tariff rate on all imports from Canada would apply from August 1, adding the European Union would 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.

Both Nasdaq futures NQc1 and S&P 500 futures ESc1 fell almost 1% before recovering most of the losses and were last down 0.2%. EUROSTOXX 50 futures STXEc1 were also last 0.2% lower.

The euro EUR=EBS slipped 0.2% to $1.1676, while the dollar gained 0.3% to C$1.3695 CAD=.

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 is 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... The potential escalation between the EU and the US is a big deal for financial markets," said Capurso.

"If you get something similar to (the U.S.-China trade war in April), that's going to be very destabilising."

Overnight, Wall Street indexes rose modestly to post record closing highs as chip giant Nvidia NVDA.O made history with a closing market valuation above $4 trillion.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS wobbled but was last up 0.4% to hit the highest level since November 2021. It was driven by a 1.7% rally in Hong Kong's Hang Seng index .HSI, helped by expectations of further policy support. .SS

Chinese blue-chips .CSI300 jumped 0.9% to the highest level since December last year ahead of talks between U.S. Secretary of State Marco Rubio and Chinese Foreign Minister Wang Yi at the ASEAN Summit.

Tokyo's Nikkei .N225 was flat, dragged lower by a 6.3% drop in shares of Uniqlo owner Fast Retailing 9983.T after it warned of a significant tariff impact to its U.S. operations from later this year.

The yen has been steadily weakening as the prospects dim for a U.S.-Japan trade deal. The dollar was up 0.4% on Friday at 146.88 yen JPY=EBS and is headed for a weekly gain of 1.6%, the biggest this year.

Bitcoin BTC= jumped 3.8% to $117,880, the highest on record.

With little on the data calendar in Europe and the U.S., investors are gearing up for second-quarter U.S. corporate earnings next week to gauge the impact of Trump's tariffs from April 2. JPMorgan Chase JPM.N is due to release results on Tuesday, essentially kicking off the reporting period.

In Treasury markets, moves were muted in Asia. Benchmark 10-year U.S. Treasury yields US10YT=RR rose 2 basis points to 4.3637%, having edged up a tiny bit overnight after data showed jobless claims unexpectedly fell last week.

Oil prices rose slightly after losing 2% overnight. Brent crude futures LCOc1 gained 0.2% to $68.77 a barrel, having lost 2.2% a day earlier.

U.S. West Texas Intermediate crude CLc1 was up 0.3% at $66.75 a barrel.

Spot gold XAU= rose 0.4% to $3,337 an ounce.

To read Reuters Markets and Finance news, click on  https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: 0#.INDEXA