* Wall St follows Europe down
* Chinese VP to attend U.S.-China trade talks
* U.S. Treasury yields down, dollar index gains (Updates after U.S. market open, adds commentary, changes byline, previous dateline LONDON)
By Sinéad Carew
NEW YORK, May 7 (Reuters) - Concerns over trade relations between the United States and China dragged on global equity markets, oil futures and U.S. Treasury yields on Tuesday as investors fretted that the world's biggest economies were far from agreement in an ongoing trade spat.
Beijing said its top negotiator, Vice Premier Liu He, would go to Washington for talks this week, as planned, even after U.S. President Donald Trump's threat on Sunday to ratchet up tariffs on hundreds of billions of dollars of Chinese goods. U.S. Trade Representative Robert Lighthizer, who has been an advocate for tough structural changes in China, said Beijing had reneged on previous commitments. issue is to sit down and make more progress on this. Right now it feels like we're at a place where things are getting worse, not better, in terms of getting a deal done," said Art Hogan, chief market strategist at National Securities in New York.
The Dow Jones Industrial Average .DJI fell 360.64 points, or 1.36%, to 26,077.84, the S&P 500 .SPX lost 43.01 points, or 1.47%, to 2,889.46 and the Nasdaq Composite .IXIC dropped 139.14 points, or 1.71%, to 7,984.15.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed 1.23%, while the pan-European STOXX 600 index .STOXX lost 1.41%. .N .EU
INVESTORS SEEK SAFETY
U.S. Treasury yields hovered near session lows as investors turned to fixed income for safety after equities opened lower. L2N22J0IW
Benchmark 10-year notes US10YT=RR last rose 10/32 in price to yield 2.4656%, from 2.5% late on Monday.
The U.S. dollar rose and the Chinese offshore yuan remained hobbled near 2-1/2 month lows as U.S.-China uncertainty rattled traders, though both moves were modest. L5N22J5SX
The dollar index .DXY , tracking the greenback against six major peers, rose 0.12%, with the euro EUR= down 0.1% to $1.1186.
The offshore yuan CNH= was last down 0.38% at 6.797 yuan per dollar CNH= .
The Japanese yen strengthened 0.34% versus the greenback at 110.41 per dollar.
In emerging markets, the Turkish lira came under renewed heavy fire after the country's elections board decided to scrap and re-run Istanbul elections. prices fell on worries U.S.-China tariffs would hurt global growth, but U.S. sanctions on Iran and Venezuela tightened supply and helped limit losses.
U.S. crude CLcv1 fell 1.59% to $61.26 per barrel.
Emerging market stocks lost 0.68%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.15% lower, while Japan's Nikkei .N225 lost 1.51%. .SS
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Chinese offshore yuan vs U.S. dollar
https://tmsnrt.rs/2WtQgQw U.S.-China trade and GDP comparison
https://tmsnrt.rs/2VNqSrW
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>