Global Markets Swayed by Trade Uncertainties and Middle East Tensions

Global stocks and the dollar took a hit on Thursday, as investors considered a somewhat mild U.S. inflation report along with an uneasy trade truce between Washington and Beijing. Additionally, rising tensions in the Middle East and ongoing tariff concerns hindered risk sentiment in the markets.

European stocks seemed poised for a lower opening, with futures tracking Germany's DAX and London's FTSE 100 showing declines of 0.8% and 0.4%, respectively. In the U.S., Wall Street's S&P 500 was expected to start lackluster, with market participants eyeing updates on U.S.-China trade negotiations.

Further complications arose as Trump hinted at potential new tariffs on numerous countries, adding uncertainty in the markets. Stocks took a breather after recent rallies, influenced by Trump's unpredictable tariff policies, which have already troubled global markets throughout the year.

(With inputs from agencies.)