* GRAPHIC-World FX rates in 2018: http://tmsnrt.rs/2egbfVh
* Trump OKs $50B in tariffs as China vows retaliation
* China trade spat sparks sell-off in U.S. soybean futures
* European, emerging market stocks down more than 1 percent each
* Oil slumps 3 percent (Updates with close of U.S. markets)
By Laila Kearney
NEW YORK, June 15 (Reuters) - Wall Street ended lower on Friday and global stocks continued to slide after U.S. President Donald Trump announced new tariffs on Chinese goods, while oil plummeted 3 percent on expectations that Saudi Arabia and Russia output would soon increase.
Trump announced hefty tariffs on $50 billion of Chinese imports starting on July 6, with Beijing immediately vowing to respond in kind, intensifying fears of a growing trade war between the world's two biggest economies. unveiled a 25 percent tariff on a list of strategically important imports from China, including cars, promising further measures if Beijing struck back.
"Investors are worried that with the trade war escalating, today it's better to sell out... and take profits," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.48 percent, while the pan-European FTSEurofirst 300 index .FTEU3 lost 1.00 percent.
Emerging market stocks were hit particularly hard, tumbling 1.06 percent, a move maybe attributable as much to a strong dollar as to trade tensions.
In commodities, soybeans sank as the U.S.-China trade spat threatened shipments to the world's biggest buyer of the oilseed. Soybean futures fell 2.5 percent, hitting their lowest level since June 23 of last year. ICE cotton futures also dropped on the day. decision on tariffs comes a day after stock markets rallied on the European Central Bank's decision to hold off on raising rates at least until the middle of next year. the close of U.S. markets, the Dow Jones Industrial Average .DJI fell 84.83 points, or 0.34 percent, to 25,090.48, the S&P 500 .SPX lost 3.07 points, or 0.11 percent, to 2,779.42 and the Nasdaq Composite .IXIC dropped 14.66 points, or 0.19 percent, to 7,746.38.
The outbreak of a global trade war has been the most frequently cited "biggest tail risk" by investors this year in Bank of America (NYSE:BAC) Merrill Lynch's monthly survey of global fund managers, on the back of ramped up protectionist rhetoric and measures by the U.S. administration.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.65 percent lower, with Chinese stocks leading the losses.
OPEC IN FOCUS
World oil markets cratered on fears of increased supply, with U.S. Crude on track for its biggest decline since May 15, and to end the week down 1.3 percent. Brent was headed for a 4 percent loss on the week. Organization of Petroleum Exporting Countries is slated to meet next week in Vienna, with two of the biggest producers - Saudi Arabia and Russia - indicating they were prepared to increase output.
"Everyone is talking about raising production - the only question is by how much," said Bob Yawger, director, energy at Mizuho in New York.
U.S. crude CLcv1 settled at $65.06 per barrel, down 2.74 percent, and Brent crude LCOcv1 was last at $73.44, down 3.29 percent.
In currencies, the U.S. dollar slipped against the safe-haven yen in the wake of the announced tariffs, while the dollar index .DXY , which measures the greenback against six currencies, rose 0.01 percent.
The euro EUR= , which on Thursday suffered its biggest fall against the dollar in two years after the ECB's interest rate decision, rose up 0.35 percent to $1.1607. fears drove demand for safe government bonds, causing U.S. Treasury yields to fall to their lowest levels in a week. Benchmark 10-year notes US10YT=RR last rose 7/32 in price to yield 2.9223 percent, from 2.946 percent late on Thursday.
The 30-year bond US30YT=RR last rose 14/32 in price to yield 3.0434 percent, from 3.066 percent Thursday. seen a little bit of a risk-off trade, which is aiding in the Treasury rally,” said Justin Lederer, an interest rate strategist at Cantor Fitzgerald in New York.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC-World shares set for weekly loss
https://reut.rs/2MszUmP GRAPHIC-History of biggest 'tail risk' for markets from Bank of America's monthly global fund manager survey
https://reut.rs/2Mqq7xr
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