London (AFP) - Global stock markets slid on Thursday as US President Donald Trump launched a new volley in his trade war, while gold hit a new record high.

Worries about a potential US government shutdown at the weekend also worried investors, while Russian President Vladimir Putin’s limited backing of a ceasefire in Ukraine failed to boost sentiment.

“President Trump’s threat of more tariffs, this time a 200 percent tariff on alcoholic beverages from the EU, has led to the resumption of the last few week’s sell-off in global stock indices,” said analyst Axel Rudolph at online trading platform IG.

Trump threatened Thursday to impose 200-percent tariffs on wine, champagne and other alcoholic products from France and other European Union countries in retaliation against the bloc’s planned levies on US-produced whiskey, part of the EU’s reprisals for US tariffs on steel and aluminium imports.

Trump has launched trade wars against competitors and partners alike since taking office, wielding tariffs as a tool to pressure countries on commerce and other policy issues.

Shares in luxury giant LVMH, which owns several champagne houses including Dom Perignon and Hennessy cognac, slid 0.9 percent.

Shares in French drinks group Pernod Ricard, which owns two champagne houses and Jameson Irish Whiskey, tumbled 4.1 percent.

The Paris stock exchange finished the day down 0.6 percent and Frankfurt shed 0.5 percent. London ended the day flat.

Wall Street’s three main indices were down more than one percent in afternoon trading.

The drop came despite data showing US producer inflation was flat in February, defying expectations of an uptick as Trump’s tariff hikes targeting Chinese goods took effect.

David Morrison, senior market analyst at Trade Nation, said cool inflation data would normally spark a rally, but investors remain wary.

“The problem is President Trump’s tariff strategy, which appears indiscriminate, poorly targeted and inconsistent,” he said.

Gold, seen as a safe haven, struck an all-time high of $2,971 per ounce, surpassing its late February record.

Trump’s tariffs and pledges to slash taxes, regulations and immigration have sparked market volatility and concerns that the measures could reignite inflation.

That in turn could force the Federal Reserve to lift interest rates again, potentially causing a recession.

Analysts pointed out that the latest US inflation figures, while welcome, had to be taken in context.

National Australia Bank’s Tapas Strickland said it was “worth noting the data was for February and thus largely pre-dates any potential tariff impacts”.

Traders were also waiting on a decision from Russia on whether to mirror Ukraine’s acceptance of a 30-day ceasefire as proposed by the United States.

“Investors remain on the edge of their seat as they weigh up the impact of tariffs and whether ceasefire talks will yield an agreement between Russia and Ukraine,” said Russ Mould, investment director at AJ Bell.

Putin appeared to condition a 30-day ceasefire that the Trump administration has been pushing on Russian troops ejecting Ukrainian forces from Russia’s Kursk region.

- Key figures around 1630 GMT -

New York - Dow: DOWN 1.2 percent at 40,866.00 points

New York - S&P 500: DOWN 1.2 percent at 5,533.54

New York - Nasdaq Composite: DOWN 1.7 percent at 17,355.00

London - FTSE 100: FLAT at 8,542.56 (close)

Paris - CAC 40: DOWN 0.6 percent at 7,938.21 (close)

Frankfurt - DAX: DOWN 0.5 percent at 22,567.14 (close)

Tokyo - Nikkei 225: DOWN 0.1 percent at 36,790.03 (close)

Hong Kong - Hang Seng Index: DOWN 0.6 percent at 23,462.65 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,358.73 (close)

Euro/dollar: DOWN at $1.0862 from $1.0890 on Wednesday

Pound/dollar: DOWN at $1.2945 from $1.2969

Dollar/yen: DOWN at 147.64 yen from 148.32 yen

Euro/pound: DOWN at 83.91 pence from 83.97 pence

West Texas Intermediate: DOWN 1.1 percent at $66.91 per barrel

Brent North Sea Crude: DOWN 1.0 percent at $70.27 per barrel

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