Emerging market stocks lead declines in indexes across the globe on Wednesday as investors looked to take risk off the table while a deadline in the U. S.-China trade conflict loomed and U. S.-Canada trade talks resumed.
NEW YORK (Reuters) — Emerging market stocks lead declines in indexes across the globe on Wednesday as investors looked to take risk off the table while a deadline in the U. S.-China trade conflict loomed and U. S.-Canada trade talks resumed.
Weakness in emerging market currencies helped support the dollar, which retreated modestly as the euro rose and Britain’s sterling regained some ground in volatile trading after a four-day losing streak.
The United States and Canada resumed talks about revamping the North American Free Trade Agreement (NAFTA). Canada insisted there was room to salvage the pact despite few signs a deal was close. U. S. President Donald Trump said the United States should have a fair trade deal with Canada.
A public comment period on the possibility of fresh U. S. tariffs on another $200 billion of Chinese goods ends on Thursday, with expectations that Trump will impose the additional levies.
The deadline weighed on MSCI’s emerging markets equities index, which fell 1.7 percent in line with a drop in the Shanghai SE Composite index.
“The linchpin will be China,” said Sameer Samana, global equity and technical strategist for Wells Fargo Investment Institute, in St. Louis, adding that if China continues to grow, other emerging market countries could regain ground.
