GLOBAL MARKETS-Trade tensions hit stocks, while oil craters on supply fears

* GRAPHIC-World FX rates in 2018: http://tmsnrt.rs/2egbfVh

* Trump OKs $50B in tariffs as China vows retaliation

* European, emerging market stocks down more than 1 percent

each

* Oil down 3 pct on prospect for higher output

(Updates with afternoon trading)

By Nick Brown

NEW YORK, June 15 (Reuters) - Share (LSE: SHRE.L - news) prices extended their

slide across the globe in U.S. afternoon trading on Friday after

U.S. President Donald Trump announced new tariffs on Chinese

goods, while oil prices plummeted 3 percent over signs that

supply may soon rise.

Trump announced hefty tariffs on $50 billion of Chinese

imports on Friday, with Beijing threatening to respond in kind,

stoking fears of a trade war between the world's two biggest

economies.

Trump unveiled a 25 percent tariff on a list of

strategically important imports from China, promising further

measures if Beijing struck back.

MSCI (Frankfurt: 3HM.F - news) 's gauge of stocks across the globe shed

0.64 percent, while the pan-European FTSEurofirst 300 index

lost 1.00 percent.

Emerging market stocks were hit particularly hard, tumbling

1.12 percent, a move maybe attributable as much to a strong

dollar as to trade tensions.

"I think the biggest concern at the moment, more than talk

about trade, is the tightening of monetary conditions in

emerging markets caused by a stronger dollar," said Michael

Hewson, chief markets analyst at CMC Markets (LSE: CMCX.L - news) in London, noting

the Federal Reserve's forecast for a total of four interest rate

rises in 2018.

Trump's decision on tariffs comes a day after stock markets

had rallied on the European Central Bank's decision to hold off

on raising rates at least until the middle of next year.

U.S. share indexes opened lower on the impending tariffs and

kept sliding afternoon trading.

The Dow Jones Industrial Average fell 214.92 points,

or 0.85 percent, to 24,960.39, the S&P 500 lost 11.52

points, or 0.41 percent, to 2,770.97 and the Nasdaq Composite

dropped 24.31 points, or 0.31 percent, to 7,736.73.

The outbreak of a global trade war has been the most

frequently cited 'biggest tail risk' by investors this year in

Bank of America Merrill Lynch's monthly survey of global fund

managers, on the back of ramped up protectionist rhetoric and

measures by the U.S. administration.

It is not clear when Trump will activate the measures, but

rising Sino (Dusseldorf: 1205802.DU - news) -U.S. tensions will put more pressure on China's

economy, which is starting to show signs of cooling.

MSCI's broadest index of Asia-Pacific shares outside Japan

closed 0.65 percent lower, with Chinese stocks

leading the losses.

OPEC IN FOCUS

World oil (Other OTC: WOGI - news) markets cratered on fears of increased supply,

with U.S. Crude on track for its biggest decline since May 15,

and to end the week down 1.3 percent. Brent was on track for a 4

percent loss on the week.

The Organization of Petroleum Exporting Countries is slated

to meet next week in Vienna, with two of the biggest producers -

Saudi Arabia and Russia - indicating they were prepared to

increase output.

"Everyone is talking about raising production - the only

question is by how much," said Bob Yawger, director, energy at

Mizuho in New York.

U.S. crude settled at $65.06 per barrel, down 2.74

percent, while Brent was last at $73.37, down 3.38

percent.

In currencies, the U.S. dollar slipped against the

safe-haven yen in the wake of the announced tariffs, while the

dollar index , which measures the greenback against six

currencies, fell 0.02 percent.

The euro , which on Thursday had suffered its biggest

fall against the dollar in two years after the ECB's interest

rate decision, rose 0.38 percent to $1.1611.

Trade fears drove demand for safe government bonds, causing

U.S. Treasury yields to fall to their lowest levels in a week.

Benchmark 10-year notes last rose 10/32 in price to

yield 2.9095 percent, from 2.946 percent late on Thursday.

The 30-year bond last rose 21/32 in price to

yield 3.0323 percent, from 3.066 percent Thursday.

“You’ve seen a little bit of a risk-off trade, which is

aiding in the Treasury rally,” said Justin Lederer, an interest

rate strategist at Cantor Fitzgerald in New York.

(Additional reporting by Ritvik Carvalho, Jessica Resnick-Ault

and Karen Brettell; Editing by Bernadette Baum)