By Sinéad Carew
NEW YORK, Sept 4 (Reuters) – Stocks fell in major markets around the world on Tuesday and emerging markets currencies lost ground while the U.S. dollar rose as investors looked for safety as they braced for an escalation in the U.S.-China trade conflict.
Emerging markets stocks and currencies were under added pressure on concerns about inflation in Turkey, and after data showed South Africa had slumped into recession in the second quarter.
U.S. Treasury yields rose as investors prepared for heavy corporate debt supply, and as falling Italian debt yields reduced safety demand for U.S. government debt.
The public comment period on a U.S. proposal for new tariffs on Chinese goods is set to end on Thursday. U.S. President Donald Trump can then follow through on plans to impose levies on $200 billion more of Chinese imports.
U.S.-Canada trade talks ended on Friday with no deal to revamp the North American Free Trade Agreement (NAFTA) after Trump told Congress he would sign a bilateral trade pact with Mexico.
“Since August was a good month for stocks, we are seeing some profit taking and the headlines on China negotiations seem to be weighing a little bit as well,” said Sean O’Hara, president of Pacer ETFs in Paoli, Pennsylvania.
The Dow Jones Industrial Average fell 11.05 points, or 0.04 percent, to 25,953.77, the S&P 500 lost 5.14 points, or 0.18 percent, to 2,896.38 and the Nasdaq Composite dropped 19.89 points, or 0.25 percent, to 8,089.65.
The pan-European FTSEurofirst 300 index lost 0.74 percent. MSCI’s gauge of stocks across the globe shed 0.50 percent for its biggest one-day decline since Aug. 15, weighed down by declines in Wall