London (AFP) - Major global stock markets extended losses on Friday on heightened concerns over the potential fallout from US President Donald Trump’s tariff agenda.

US stocks slumped on opening with the NASDAQ falling 1.0 percent and both the S&P and Dow dropping by 0.8 percent.

European indices likewise traded lower in mid afternoon deals following some heavy falls in Asia and weakness on Thursday on Wall Street.

London lost 0.7 percent, Paris fell 1.0 percent and Frankfurt suffered a 1.2 percent drop.

“Overall, stocks are sliding because of a lack of confidence,” said Kathleen Brooks, research director at XTB trading group.

“There is a confidence deficit around the world, which has been triggered by the unorthodox economic policies of Donald Trump.”

Stock markets across the globe retreated on Thursday after the Federal Reserve painted a gloomier picture for the US economy in the near future, even if Federal Reserve boss Jerome Powell downplayed the impact of tariffs.

The Bank of England and Bank of Japan this week have warned about economic uncertainty fuelled by Trump.

“Equity investors are back focusing on the uncertainty and negative impact that is likely to come from a trade war,” National Australia Bank’s Rodrigo Catril noted on Friday.

“Sentiment remains fragile with investors nervous and not sure whether to put on risk or take it off.”

Shares in Hong Kong sank for a second day running after a blistering start to the year.

Chinese electric vehicle maker BYD dived more than eight percent following a report that the European Commission was conducting a foreign subsidy investigation into its plant in Hungary.

British Airways-owner IAG retreated more than two percent after the airline warned that the temporary closure of Heathrow airport, its main hub, would significantly affect operations.

Europe’s busiest airport shut down early on Friday after a fire at a nearby substation supplying power to the sprawling facility west of London.

“This will clearly have a significant impact on our operation and our customers and we’re working as quickly as possible to update them on their travel options for the next 24 hours and beyond,” British Airways said in a statement.

Nike slid 7.6 percent on Friday after the athletic footwear and apparel giant reported falling quarterly revenue.

Unease about the outlook continues to push gold prices higher as investors seek a safe haven from the volatility.

The precious metal was sitting just below the record $3,057.49 per ounce (28.35 grammes) touched on Thursday.

“While much ink has been spilled linking the latest leg up in the price over the last month to the US growth scare, it is notable that gold has historically had a mixed record around US recessions,” said Kieran Tompkins, senior climate and commodities economist at Capital Economics.

Oil prices dropped despite rising tensions in the crude-rich Middle East.

- Key figures around 1330 GMT -

New York - Dow: DOWN 0.8 percent at 41,611.68 points

New York - S&P: DOWN 0.8 percent 5,619.28

New York - Nasdaq: DOWN 1.0 percent at 17,509.52

London - FTSE 100: DOWN 0.7 percent at 8,642.48 points

Paris - CAC 40: DOWN 1.0 percent at 8,013.61

Frankfurt - DAX: DOWN 1.2 percent at 22,729.03

Tokyo - Nikkei 225: DOWN 0.2 percent at 37,677.06 (close)

Hong Kong - Hang Seng Index: DOWN 2.2 percent at 23,689.72 (close)

Shanghai - Composite: DOWN 1.3 percent at 3,364.83 (close)

Euro/dollar: DOWN at $1.0831 from $1.0856 on Thursday

Pound/dollar: DOWN at $1.2930 from $1.2967

Dollar/yen: UP at 148.80 yen from 148.76 yen

Euro/pound: UP at 83.79 pence from 83.72 pence

West Texas Intermediate: DOWN 0.4 percent at $67.81 per barrel

Brent North Sea Crude: DOWN 0.5 percent at $71.65 per barrel