The European parliamentary election is the second largest democratic exercise in the world.Europe Newsread more
Buybacks have gotten a bad rap from both Republicans and Democrats. But stocks would be trading at a massive discount without them.Marketsread more
Fiat Chrysler and France's Renault could soon partner up to take on the sweeping changes to the global auto industry, according to a report in the Financial Times. The...Autosread more
Microsoft shares have gained 133% since November 2015, outperforming a tech "basket of unicorns" over that stretch.Technologyread more
The president's state visit comes amid tensions with carmaker Toyota over potential auto tariffs. Trump has repeatedly threatened Japanese and European carmakers with tariffs.Traderead more
When commercial real estate investor Manny Khoshbin spent $2.2 million on the fastest production car in the world, he had no idea it would very quickly also become the...Autosread more
The IRS is about to release a new draft of Form W-4, which will more closely reflect the changes stemming from the Tax Cuts and Jobs Act. For workers, that means they'll need...Personal Financeread more
The Mega Millions jackpot has spilled over $400 million. It would be the ninth largest winning since the game began in 2002.Personal Financeread more
Trump was speaking at a meeting of Japanese business leaders in Tokyo during his state visit to Japan on Saturday.Marketsread more
The biggest U.S. gasoline price surge in years is running out of steam just in time for the start of the summer driving season.Energyread more
The federal minimum wage has remained $7.25 per hour since 2009. But several states, and even some companies, have since taken matters into their own hands to pay employees a...Workread more
* Europe's shares weaken after heavy fall on Monday
* Wall Street futures slip following Trump's tariff threat
* U.S.-China talks to continue this week; Chinese VP to attend
* Nikkei falls as Japanese markets reopen after 10-day break
* Brent oil drops back towards $70 a barrel
LONDON, May 7 (Reuters) - U.S. President Donald Trumps latest threat to ramp up trade tariffs on China kept global share markets weak on Tuesday, while Turkey's lira was back in trouble as concerns about its politics erupted again.
Europe's main bourses and Wall Street futures were firmly back in the red after Trump's threat on Monday to ratchet up tariffs on hundreds of billions of dollars of Chinese goods triggered the biggest global sell-off since March.
It had been a broadly steady start but that had made way for more selling. London was down more than 1 percent as it played catch-up after a long weekend, but Frankfurt, Paris and the pan-European STOXX 600 were down 0.6-0.8 percent too.
Some investors were still hoping that Trump's moves were a negotiating tactic, especially after Beijing confirmed that its top negotiator, Vice Premier Liu He, would go to Washington for talks on Thursday and Friday as planned.
Though Japan's Nikkei took a delayed hit of 1.5 percent having been closed for over a week, MSCI's main global and Asia indexes largely held their ground overnight as Chinese shares also recovered from their worst drop in more than three years.
"We expect the situation to de-escalate as the issue seems solvable and Liu He, Chinas lead negotiator, is continuing with his plans to travel to Washington D.C. for talks this week," said Oxford Economics economist Louis Kuijs.
"Nonetheless, the probability of renewed escalation of the U.S.-China trade war has risen substantially, which would be a drag on their respective economies, especially on China."
Following Trump's tariff warning, U.S. officials accused China of backtracking on substantial commitments made during the months of negotiations between the two countries.
Beijing's response to the prospect of new tariffs has been reserved, and on Tuesday, Foreign Ministry spokesman Geng Shuang told a news briefing that mutual respect was the basis for reaching a trade agreement.
"Adding tariffs can't resolve any problem," Geng said. "Talks are by their nature a process of discussion. It's normal for both sides to have differences. China won't shun problems and is sincere about continuing talks," he added.
China's yuan had recouped some of its early Asia session losses against the dollar but it remained hobbled near 2-1/2 month lows in the international 'offshore' markets at 6.7833 yuan per dollar.
There was plenty more keeping traders busy too.
Australia's dollar jumped almost 1 percent to a one-week top of $0.7048, after the country's central bank kept rates on hold, wrongfooting some who had expected it to cut.
Other major currencies remained confined to well-trodden ranges, with the dollar steady at 110.63 yen and the euro trading virtually flat at $1.1195 despite new European Commission forecasts highlighting Italy's debt worries.
With no changes in the government's spending policies, Italy's budget deficit is also set to grow, to 2.5 percent of output this year and to 3.5 percent in 2020, beyond the 3.0 percent ceiling set by EU fiscal rules.
In emerging markets, the Turkish lira came under renewed heavy fire after the country's elections board decided to cancel a municipal election in Istanbul and order a re-run.
It slid as much as 1.5 percent and past the 6.15 per dollar threshold, which also sent Istanbul's stock market and government bonds tumbling badly too.
"The rule of law is under scrutiny by markets," UniCredit EM FX strategist Kiran Kowshik said.
"It is also clear that Turkish reserves are depleted and there are questions about whether Turkey can weather its immediate challenges without an external anchor like the IMF."
In the commodity markets, oil dropped around 1 percent as the renewed doubts over U.S.-China trade talks offset the potential supply worries of U.S. sanctions on crude exporters Iran and Venezuela.
Back on Wall Street, digger giant Caterpillar, which is often seen as a proxy for China's fortunes, dipped 0.6 percent in pre-market trading. Tariff-sensitive Boeing fell 1.4 percent too as talk of a downgrade from Barclays also hit the planemaker's stock..
The U.S. earnings season is now in the homestretch and of the 392 S&P companies that have reported so far, about 75 percent have surpassed analysts' estimates, according to Refinitiv data.
The upbeat reports have also turned around earnings estimates for the first quarter to an almost 1 percent rise, a huge improvement from the 2.3 percent decline expected at the start of the season last month.
(Additional reporting by Tom Arnold in London Editing by Gareth Jones)