European stocks and U.S. futures slipped on Thursday as investors turned their attention back to an escalating global trade war.

By Kevin Buckland TOKYO (Reuters) -Stocks sank in Asia on Thursday, reversing initial gains, as worries about the economic impact of President Donald Trump's trade policies overtook early optimism from a tepid reading of U.

Shares in European drinks companies fell, after President Trump threatened to impose 200% tariffs on alcohol imports from the European Union.

"In a recessionary environment, we recommend infrastructure and back office application platform vendors, with more resilient spend," analysts at BofA said.

U.S. stocks dropped on Tuesday, extending losses suffered a day earlier amid a fresh round of tariffs on Canada and concern about a possible recession. The Dow Jones Industrial Average closed down about 475 points,

Global stock markets extended losses on Tuesday after President Donald Trump doubled planned tariffs on Canadian steel, aggravating concerns his trade policies could push the United States toward recession.