U.S. stock futures and Asian shares fell on growing anxiety over deadlock of the US-China trade deal
On Monday U.S. stock futures and Asian shares fell on growing anxiety over whether the United States and China will be able to salvage a trade deal after the US administration sharply hiked tariffs and Beijing vowed to retaliate.
The United States and China appeared at a deadlock over trade negotiations this Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it «would not swallow any bitter fruit» that harmed its interests.
As a result, investors are bracing for countermeasures from China in retaliation for Tramp’s tariff increase this Friday on $200 billion worth of Chinese goods.
E-Mini futures for the S&P 500 shed 1.0%.
On Thursday MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.5%, nearing its two-month low marked.
Chinese shares tumbled, with the benchmark Shanghai Composite and the blue-chip CSI 300 shedding as much as 1.6% and 1.9% before paring some of the losses.
Japan’s Nikkei average sunk as much as 1.0% to hit its lowest level since the 28 of March.
U.S. benchmark 10-year Treasury note yield inched down to 2.437%.
In commodity markets, the U.S. crude futures were last down 0.1% at $61.62 a barrel, while Brent crude futures gained 0.3 percent at $70.81.
Spot gold eased 0.1% to $1,283.61 per ounce.
For reference, digital currencies maintained most of their big gains made over the weekend. On Saturday Bitcoin jumped more than 10 % and marked its nine-month high of $7,585.00 on Sunday before paring the gains.