GLOBAL MARKETS-Stocks slide on business concerns, oil drops some gains

* Asian stocks ease, US stock futures down 0.5 pct

* China, auto stocks take the brunt of Trump's trade war

* Oil prices give up gains as OPEC accepts higher production

* The Turkish lira rises to over 1 pc after Erdogan's victory

* European stocks fell 0.5-0.6 pct

By Hideyuki Sano

TOKYO, June 25 (Reuters) – World stock prices fell on Monday due to escalating trade tensions between the United States and major economies, while crude oil prices fell.

European equities, which reached lows of several weeks last week, are expected to decline, with financial spreads predicting a decline of 0.5% in the UK FTSE and the German DAX and a 0.6% decline in the French CAC. .

In Asia, the S & P500's mini-futures eased 0.6% while Asia's broader MSCI Asia-Pacific index dropped 0.95% at 6 12 months low. The Japanese Nikkei lost 0.8%.

The Wall Street Journal reported that US President Donald Trump intends to prevent many Chinese companies from investing in US technology companies and blocking additional technology exports to China.

"Until last week, there was a vague optimism that we can muddle through this, but now, unless the United States drops its arms, things will get more and more chaotic," he said. said Hirokazu Kabeya, chief strategist at Daiwa Securities.

While the threat of a real trade war has become all the more real, the MSCI stock index around the world has dropped in five of the last six weeks, including last week. , where it dropped by 1%. month.

Chinese stocks were among the biggest losers, tumbling 3.7% last week, as Trump set fire to Beijing, threatening to hit $ 200 billion of Chinese imports with 10% tariffs .

Policymakers in China have moved quickly to mitigate the potential negative effects of the trade dispute, the central bank announced Sunday that it would reduce by 50 basis points the amount of cash that some banks must hold as reserves.

The reduction in reserve requirements, the third by the central bank this year, has been widely anticipated by investors and aims to accelerate the pace of debt-for-equity swaps and encourage small businesses.

Despite this move, the CSI300 index of Chinese mainland shares lost 0.8%, coming close to its one – year low on Friday.

The global automakers index remained weak after dropping 4.7% last week,

Trump has threatened to impose a 20% rate Friday on all car imports assembled at the EU, a month after his administration launched an investigation into whether auto imports accounted for a threat to national security.

A senior European Commission official said Saturday that the European Union would react to any US initiative to raise tariffs on cars made in the bloc.

Investors and traders worry that the threat of higher US tariffs and retaliation by others could derail a rare period of synchronized global growth.

Oil prices were supported after OPEC producers and non-OPEC countries agreed to a modest increase in production next month without announcing oil prices. 39; precise objective for the increase of production.

OPEC and non-OPEC countries said in their statement that they would increase supply by returning to 100 percent compliance with previously agreed production cuts, after months of underproduction.

"In reality, there are not many countries that can increase yields, only Saudi Arabia having the capacity to increase production in a flexible way." But if the Saudis alone are strongly increasing their production, they may be hurt by some other countries, "said Tatsufumi Okoshi, Senior Commodity Economist at Nomura Securities.

US crude oil futures traded at $ 68.36 per barrel, down 0.3 per cent the day after Friday's 4.6 per cent rally.

The Brent international benchmark, however, lost 1.8% to 74.22 dollars a barrel, giving up more than half of its gains on Friday.

In the currency market, the euro has held steady at $ 1.1656, rebounding after hitting its lowest level in 11 months, at $ 1.1508 on Thursday.

The euro climbed Friday as traders were encouraged by improved data on regional economic growth and new assurances given by Italian politicians that their country would not leave the single currency.

Activity in Germany and France, the first two economies in the euro area, recovered in June despite trade tensions between Europe and the United States, according to data from the US. IHS Markit.

The dollar fell 0.55% to 109.38 yen, reaching its lowest level in two weeks, with the yen firming on worries about global trade frictions.

The Turkish lira gained up to 1.6% on the expectations of a stable government after Tayyip Erdogan and his ruling party, the AKP, won Sunday's presidential and legislative elections in Turkey.

But his victory has kept worries about inflation and the independence of the central bank, given recent comments from Erdogan suggesting he wants to take greater control of monetary policy. .

The last pound was traded at 4.5850 for a dollar, up 1.7% from 4.6625 at the end of last week.

Bitcoin has stabilized after reaching a seven-month low over the weekend while the security of cryptocurrency trading operators has been subjected to more scrutiny.

Digital money fell to $ 5,780 and rose to $ 6,161.