Futures Hit After Global Times Warns Beijing Will Soon Unveil Retaliatory Tariff

With traders focused squarely on events in Wyoming this morning - the Jackson Hole day's agenda can be found here, it notably lacks the presence of iconic QE/NIRP doves Draghi and Kuroda, as if the old central bank guard is quietly being carted away - moments ago China gave markets a reminder that Beijing still has to disclose how it will retaliate to the upcoming $300BN in US tariffs on Chinese imports (which were delayed from Sept 1 to Dec 15), which it is saving to inflict maximum adverse market impact.

This happened when China's most famous twitter troll, Global Times editor in chief, Hu Xijin tweeted just after 6:30am that "China will take further countermeasures in response to US tariffs on $300 billion Chinese goods. Beijing will soon unveil a plan of imposing retaliatory tariffs on certain US products. China has ammunition to fight back. The US side will feel the pain."

US equity futures, levitating merrily overnight without a care in the world, and certainly not concerned about a hawkish surprise from Powell in just over 3 hours when he delivers his J-Hole speech, were hit, giving up about a third of their gains in response amid a burst in trading volume.

So far Trump has resisted the temptation to tweet @ Hu, although we doubt this will last, and are eagerly looking forward to the quant chaos as algos try to make sense of the tweeter war between the world's two most important twitter trolls in real time.