Futures Slide On Fresh Brexit Turmoil, US-China Tensions

After opening at a new all time high on Sunday evening following Friday’s record close, S&P futures drifted lower as fresh Sino-U.S. tensions over Hong Kong dented sentiment and renewed last minute disagreements threatened to torpedo Brexit negotiations, while investors also awaited concrete signs of progress on a coronavirus relief bill. Oil fell while the dollar rose.

Shares of U.S. banks including Morgan Stanley, Wells Fargo & Co, JPMorgan & Chase, Citigroup and Goldman Sachs fell between 0.4% and 1% in premarket trading. Intel dropped on a report that Apple Inc. is planning a series of new Mac processors aimed at outperforming Intel’s fastest chips.

Risk aversion hit global markets after Reuters reported late on Sunday that Washington was preparing to impose sanctions on some Chinese officials over their alleged role in Beijing’s disqualification of elected opposition legislators in Hong Kong. China said it firmly opposed U.S. interference in its domestic affairs, in response to the report.

The news hit Hang Seng shares and pulled Asian equities lower, weakening the Yuan and pushing the Shanghai Composite down 0.8% even after 21.1% jump in China exports – the most since early 2018 – pushing its trade surplus to a monthly record high and underlining how global demand for pandemic-related goods is supporting a growth rebound in the economy.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s