GLOBAL MARKETS-US stocks ease as US moves ahead on China tariffs; euro up after reports of German coalition

Updates to afternoon

By Caroline Valetkevitch

NEW YORK, April 8 (Reuters) - U.S. stock indexes were mostly lower on Tuesday as the United States said 104% duties on imports from China will take effect shortly after midnight, while the euro and European equity index futures rose after reports that Germany's political parties reached a deal on a coalition.

Stocks had been sharply higher earlier in the day, with investors optimistic that Washington might be willing to negotiate on some of its aggressive tariffs.

The Trump administration also moved to quickly start talks with other trading partners targeted by President Donald Trump's sweeping tariff plan.

Germany's NTV reported Germany's conservatives under chancellor-in-waiting Friedrich Merz on Tuesday reached a deal with the centre-left Social Democrats $(SPD.AU)$ to form a government. Two people with knowledge of the matter told Reuters, however, that there was not yet an agreement.

Germany's EuroSTOXX 50 futures STXEc1 rose 0.72%, DAX futures FDXc1 were up 0.55% and CAC 40 futures FCEc1 were up 0.43%. Bund futures FGBLc1 trimmed losses a bit.

The euro EUR= was last up 0.41% against the dollar at $1.0948.

On Wall Street, the Dow Jones Industrial Average .DJI rose 62.46 points, or 0.16%, to 38,028.03, the S&P 500 .SPX fell 13.34 points, or 0.27%, to 5,048.75 and the Nasdaq Composite .IXIC fell 79.19 points, or 0.51%, to 15,522.91.

MSCI's gauge of stocks across the globe .MIWD00000PUS rose 4.27 points, or 0.57%, to 749.75.

(Reporting by Caroline Valetkevitch in New York; Editing by Peter Graff, Nick Zieminski and Joe Bavier)

((caroline.valetkevitch@thomsonreuters.com))