Global stocks are falling due to the confrontation of two biggest economies

Stocks dropped globally and U.S. equity futures retreated on Thursday as a deadline approached for America and China to raise reciprocal tariffs. The yen climbed with gold and Treasuries as investors sought havens, while the yuan fell to its weakest since January. Contracts on the S&P 500, Dow Jones Industrial Average and Nasdaq 100 all declined. In Europe, miners and automakers led a retreat for the Stoxx Europe 600, which followed Asian benchmarks down after President Donald Trump ratcheted up his hard-line rhetoric on trade. Asia’s benchmark equity gauge dropped the most in six weeks. Treasury 10-year notes jumped, hours after Wednesday’s auction saw the weakest demand for the benchmark bond in a decade.

Investors are focusing on the world’s biggest economies as another phase of bilateral talks approaches. China’s top trade negotiator, Liu He, is scheduled to be in the U.S. on Thursday and Friday. Discussions will resume hours after concerns flared again about the strength of the Chinese economy — the country’s credit growth slowed in April to a level below all 27 estimates in a Bloomberg survey.

Futures on the S&P 500 Index dropped 0.6 percent as of 7:03 a.m. New York time. The Stoxx Europe 600 Index fell 0.7 percent. The Shanghai Composite Index slid 1.5 percent. The MSCI Asia Pacific Index declined 1.5 percent on the biggest drop in more than six weeks. The MSCI Emerging Market Index fell 1.8 percent. The yield on 10-year Treasuries dropped three basis points to 2.45 percent. West Texas Intermediate crude slipped 0.2 percent.