Global stock markets tumbled and the dollar retreated on Friday as uncertainty over US President Donald Trump's trade policies roiled markets and traders awaited key US jobs data.

Bitcoin plunged as much as 5.7 per cent after Trump signed an executive order to establish a "Strategic Bitcoin Reserve" without planning any public purchases of the cryptocurrency.

The unit recovered somewhat to trade down around one per cent lower.
European and Asian equities were in the red despite Trump's move Thursday to delay tariffs on Canadian and Mexican goods covered under a North American trade agreement until April 2.

The halt offers temporary relief to automakers. But Trump has said he will not modify broad tariffs for steel and aluminium imports, which are due to take effect next week.

"Even though Donald Trump has made more goods exempt from tariffs on Canada and Mexico, it's the constant tinkering that's upset investors," noted AJ Bell investment director Russ Mould.

"The fact Trump keeps changing his mind confuses matters as companies have no idea what's going on from one day to the next," he added.

The euro continued to win strong support as a planned spike in Germany's defence and infrastructure spending fuels inflation concerns and puts pressure on the European Central Bank to pause cuts to interest rates.

The ECB on Thursday reduced borrowing costs for a fifth meeting in a row amid a struggling eurozone economy.

There was brighter news Friday, however, as official data showed the eurozone economy grew by 0.9 per cent last year, higher than thought.

German stocks receded Friday after data showed that Germany's industrial orders in January posted their biggest monthly fall in a year.

Investors were awaiting Friday's US jobs report for February, a key indicator of the health of the world's largest economy.

Weekly jobless claims figures released Thursday were better than expected, while Wednesday's private payroll report from ADP lagged estimates.

"Today's US jobs report wraps up a week that has brought plenty of concern around the jobs market," said Joshua Mahony, chief market analyst at Scope Markets.

He added that tariff threats and federal cutbacks are "adding up to provide a picture of economic weakness".

Japan's Nikkei shares index led losses in Asia, closing down more than two per cent.

Chinese markets, which had been riding a wave of stimulus-induced optimism, ended the week modestly lower.

Chinese stocks had jumped earlier in the week after Beijing announced a growth target of around five per cent at its annual meeting of the National People's Congress.

China has vowed to make domestic demand its main economic driver despite facing persistent economic headwinds and an escalating trade war with the United States.

Foreign Minister Wang Yi on Friday warned that Beijing will "firmly counter" US pressure on trade.

"China-US economic and trade ties are mutual. If you choose to cooperate, you can achieve mutually beneficial and win-win results. If you use only pressure, China will firmly counter," he said.

LME temporarily suspends lending rules for cobalt contract: The London Metal Exchange (LME) temporarily suspended certain lending requirements for parties holding large amounts of inventories in its cobalt contract it said on Thursday, after available stocks slid.

The exchange's lending rules kick in when one party has a dominant position, forcing that party to provide material to other investors.

The LME cancelled its lending requirement for a party with a position in cobalt equal to 90% or more of available inventories to lend at a level premium, it said in a statement.

"This measure is designed to ensure that participants are not disincentivised from continuing to hold live warrants or to deliver in additional metal in the current low-stock environment," it added.

A warrant is a legal document showing ownership of inventories in LME warehouses.

The exchange, the world's oldest and largest market for industrial metals, said the measures will be temporary.

LME data, which is delayed, shows total inventories of 126 metric tonnes, but all of it either cancelled or earmarked for delivery out of warehouses, leaving no available stocks.

Any party that moved metal into the warehouse would likely be hit with the strict lending rules, so the LME relaxed the requirements to draw in more inventories, an industry source said.

The LME data also show that there are two parties, each with a large short and long futures position equivalent to more than 40% of open interest.

The LME is owned by Hong Kong Exchanges and Clearing Ltd.

Agencies