GLOBAL MARKETS-Stocks fall as Trump's China tariff threat dampens risk appetite

* Volumes low globally, many markets closed for holiday
* ECB warns on growth outlook but asset purchases unchanged
* Oil prices wobble in volatile session
* Graphic tracking COVID-19 spread: https://tmsnrt.rs/3aIRuz7

(Updates prices, comment; changes dateline, previous LONDON)
By Rodrigo Campos
NEW YORK, May 1 (Reuters) - A decline on Wall Street dragged
stocks across the world further down on Friday on concerns that
the two largest economies could resume a trade war, with many
financial markets globally closed for a holiday.
The euro rose and the U.S. dollar fell broadly, while crude
prices traded in and out of negative territory.
London, Tokyo and New York were open Friday, and stocks were
pressured lower in reaction to U.S. President Donald Trump's
threat to increase sanctions on China in retaliation to its
handling of the coronavirus outbreak. Trump offered no evidence on Thursday after claiming he'd
seen proof that the virus was created in a Chinese laboratory.
The pandemic, which has cost tens of thousands of lives in the
United States alone, sparked an economic contraction and
threatens Trump's chances of re-election in November.
"U.S. President Trump soured the mood in equity markets,
raising his accusations against China about the coronavirus
outbreak, threatening new tariffs," Action Economics said in a
report.
The Dow Jones Industrial Average .DJI fell 595.75 points,
or 2.45%, to 23,749.97, the S&P 500 .SPX lost 81.15 points, or
2.79%, to 2,831.28 and the Nasdaq Composite .IXIC dropped
275.44 points, or 3.1%, to 8,614.11.
The benchmark London stocks index .FTSE lost 2.34% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
2.22%. Japan's Nikkei .N225 lost 2.84%. U.S. Treasury yields were little changed after data showed
manufacturing activity in the world's largest economy plunged to
an 11-year low in April. Benchmark 10-year notes US10YT=RR last rose 2/32 in price
to yield 0.6181%, from 0.625% late on Thursday.
In a sign of the challenge ahead facing global policymakers,
the European Central Bank said on Friday the euro zone economy
is likely to rebound in the second half of this year but may
fail to return to last year's level until as late as 2022 due to
the pandemic. However the euro index =EUR rose the most in six weeks.
The dollar index =USD fell 0.184%, with the euro EUR= up
0.38% to $1.0997.
The Japanese yen strengthened 0.41% versus the greenback at
106.77 per dollar, while sterling GBP= was last trading at
$1.2511, down 0.64% on the day.
The offshore Chinese yuan CNH= hit its weakest versus the
U.S. dollar in a month after Trump's tariff threats.
Oil prices wobbled again as weak demand due to the virus and
excess supply outweighed a record output cut by OPEC and its
allies.
U.S. crude CLc1 recently rose 1.75% to $19.17 per barrel
and Brent LCOc1 was at $26.07, down 1.55% on the day.
Spot gold XAU= added 0.8% to $1,694.27 an ounce.