Futures, Yuan Tumble In Early Asian Trading

Following another weekend highlighted by no progress in trade-talks and further recriminations (from China this time, blaming Trump for the latest collapse in discussions), equity futures and yuan are opening notably lower...

Bloomberg reports that Beijing released a white paper on Sunday saying the escalating trade war between the world’s two largest economies hasn’t “made America great again” -- appropriating Trump’s 2016 campaign slogan. The paper instead contends that the trade actions have done serious harm to the U.S. economy by increasing production costs, causing prices hikes, damaging growth and people’s livelihoods and creating barriers to U.S. exports to China. In short, Trump’s tariffs aren’t helping, China concluded.

“It is foreseeable that the latest U.S. tariff hikes on China, far from resolving issues, will only make things worse for all sides,” according to the white paper.

Additionally, as Bloomberg notes, President Trump opened another potential front in his trade war on Friday, terminating India’s designation as a developing nation and thereby eliminating an exception that allowed the country to export nearly 2,000 products to the U.S. duty-free.

“I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets,” Trump said in a proclamation.

“Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019.”

S&P futures are testing the trade-deal hope lows...

Dow futures down around 200 points...

and Yuan is giving back late-Friday's bounce gains...