* Emerging markets stumble, lead global stocks down
* U.S.-Canada talks, China tariffs deadline loom
* MSCI world stock index down for fourth day in a row
By Sinéad Carew
NEW YORK, Sept 5 (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. 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. 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. deadline weighed on MSCI's emerging markets equities index .MSCIEF , which fell 1.7 percent in line with a drop in the Shanghai SE Composite index .SSEC .
"The linchpin will be China," said Sameer Samana, global equity and technical strategist for Wells Fargo (NYSE:WFC) Investment Institute, in St. Louis, adding that if China continues to grow, other emerging market countries could regain ground.
"We're actually kicking the tires to see where there's value," Samana said.
The Dow Jones Industrial Average .DJI rose 7.4 points, or 0.03 percent, to 25,959.88, the S&P 500 .SPX lost 7.71 points, or 0.27 percent, to 2,889.01 and the Nasdaq Composite .IXIC dropped 93.60 points, or 1.16 percent, to 7,997.65.
The pan-European FTSEurofirst 300 index .FTEU3 lost 1.20 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.60 percent.
Emerging market currencies showed a second day of declines, with a JPMorgan (NYSE:JPM) emerging market currency index .MIEM00000CUS falling 0.2 percent on fears export-oriented economies would be caught in the crossfire of any escalating trade conflict. GBP= was last trading at $1.2906, up 0.40 percent on the day as investors positioned for a favorable Brexit outcome even after Germany appeared to shoot down an earlier report that Berlin and London might abandon key Brexit demands. against a basket of currencies, the dollar index .DXY fell 0.31 percent, with the euro EUR= up 0.41 percent to $1.1628.
Treasuries Benchmark 10-year notes US10YT=RR last fell 1/32 in price to yield 2.904 percent, from 2.902 percent late on Tuesday. The 30-year bond US30YT=RR last fell 5/32 in price to yield 3.077 percent, from 3.069 percent late on Tuesday.
Oil prices fell after a U.S. Gulf storm weakened and moved away from oil-producing areas, and on mounting concerns about global trade disputes and Turkey's currency crisis hurting demand. O/R
U.S. crude CLcv1 fell 1.47 percent to $68.84 per barrel and Brent LCOcv1 was last at $77.28, down 1.14 percent on the day.
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https://reut.rs/2PFcQSJ Graphic: World FX rates in 2018
http://tmsnrt.rs/2egbfVh Major currencies - YTD performance
https://reut.rs/2oGepEn
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