* Long-dated notes gain on trade war, Europe concerns
* U.S. stocks down 2 percent
* China, auto shares take brunt of trade tensions
* Wall Street lower on U.S. trade disputes with China, Europe
* Oil drops as traders factor in OPEC output rise
* Turkish lira rises
By Laila Kearney
NEW YORK, June 25 (Reuters) - Global stock markets extended losses on Monday as trade fights between the United States and other leading economies worsened, while oil settled lower as the anticipation of sharply higher crude output loomed large.
U.S. Treasury Secretary Steven Mnuchin on Monday said forthcoming investment restrictions would apply "to all countries that are trying to steal our technology." remarks, posted on Twitter, came a day after a U.S. government official told Reuters the Treasury is developing rules that would bar firms with at least 25 percent Chinese ownership from buying U.S. technology companies. are now beginning to worry that this heated rhetoric is something that will last for a while and could actually lead to disruption of trade," said Sam Stovall, chief investment strategist at CFRA Research in New York.
In afternoon trading, the Dow Jones Industrial Average .DJI fell 463.31 points, or 1.88 percent, to 24,117.58, the S&P 500 .SPX lost 52.96 points, or 1.92 percent, to 2,701.92 and the Nasdaq Composite .IXIC dropped 207.82 points, or 2.7 percent, to 7,484.99.
The pan-European FTSEurofirst 300 index .FTEU3 lost 2.19 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 1.7 percent.
Technology stocks bore the brunt of the damage, with the S&P technology index .SPLRCT falling 2.7 percent, the most among the major S&P 11 sectors.
Policymakers in China moved quickly to temper any potential economic drag from its dispute with the United States. Its central bank said on Sunday it would cut the amount of cash some banks must hold as reserves by 50 basis points. European autos sector .SXAP was hit by trade tensions between Washington and Europe, falling 2.4 percent and set for its seventh straight day of losses after U.S. President Donald Trump said on Friday he aimed to hike tariffs on EU car imports by 20 percent.
The index of global auto manufacturers .MIWO0AC00PUS fell 1.33 percent.
A senior European Commission official said on Saturday
the European Union would respond to any U.S. move to raise tariffs on cars made in the bloc.
Harley-Davidson Inc (NYSE:HOG) HOG.N said on Monday it would move production of motorcycles shipped to the European Union from the United States to its international facilities and forecast the trading bloc's retaliatory tariffs would cost the company $90 million to $100 million a year. growing disputes have led investors to take refuge on safer ground.
Benchmark U.S. 10-year Treasury notes US10YT=RR gained 5/32 in price to yield 2.884 percent, down from 2.900 percent late on Friday. The yield curve between 2-year and 10-year notes US2US10=TWEB flattened to 33 basis points, the lowest level since 2007. however, hovered near last week's six-month low as investors chose Treasuries over bullion. oil fell as investors prepared for an extra 1 million barrels per day in output to hit the markets after OPEC and its partners agreed to raise production.
U.S. crude CLcv1 fell 0.6 percent to $68.17 per barrel and Brent LCOcv1 was last at $74.66, down 1.18 percent on the day.
In the currency market, the dollar index .DXY fell 0.24 percent, with the euro EUR= up 0.39 percent to $1.17.
The Japanese yen strengthened 0.48 percent versus the greenback at 109.46 per dollar, while Sterling GBP= was last trading at $1.3275, up 0.05 percent on the day.
The Turkish lira rose on expectations of a stable government after Tayyip Erdogan and his ruling AK Party claimed victory in presidential and parliamentary polls. steadied after hitting seven-month lows over the weekend as the security of cryptocurrency exchange operators came under more scrutiny. Chinese shares, auto sector take brunt of trade tensions
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