Stocks fall, may pose threat to global economy

Markets fell on Tuesday.

Stocks fell, with the S&P 500 losing 0.3 percent. West Texas Intermediate oil fell 1.8 percent to the lowest in two months. US 10-year note yields fell three basis points to 2.03 percent.

The MSCI Emerging Markets Index fell 0.7 percent, with Bhanu Baweja, the UBS Group AG strategist who correctly called this year’s rout, saying in a note on Tuesday that emerging-market currencies will decline again “before long” while emerging-market stocks will start underperforming their peers in advanced economies again.

That could be bad news for the global economy. A recent report from Oxford Economics said: “A sharp correction in global equity prices would pose a significant threat to the global economy.”