Emerging markets under pressure

US stocks fell in early trading and the dollar climbed as trade tensions persisted and emerging markets remained under pressure.

The S&P 500 dropped from near a record as Nike’s politically-controversial ad campaign and Facebook’s analyst downgrade weighed on major averages.

Metals tumbled as the dollar advanced, roiling mining stocks. The dollar added to gains after a reading of US factory output surged.

Emerging-market currencies headed for the lowest close this year, with South Africa’s rand leading losses.

Declines in Treasuries, gold and the yen left investors with few havens. Oil climbed as a storm threatened US production on the Gulf Coast.

US investors returned from a three-day weekend to ongoing woes in emerging- market assets and simmering trade tensions between America and Canada as the Trump administration moves toward more tariffs against Chinese goods.

The factory data gave a reprieve, but equities resumed declines in afternoon trading. Nike’s new ads contributed to the charged political atmosphere, while Facebook’s woes persisted.

South Africa’s unexpected tumble into a recession and Argentina’s urgent financial measures increased concern about more volatility in stocks and currencies. Investors have increasingly been weighing whether the troubles will spill into developed markets, which advanced during the summer despite trade salvo.

In Dublin the Iseq index of Irish shares lost 0.44pc to close at 6757.50. Ryanair lost more than 2.5pc.