(Bloomberg) – US stock index futures tanked after China's yuan plunged beyond $ 7 per dollar for the first time in more than a decade, reflecting deeper hopes for a solution to the nation's trade war.
The S&P 500 Index futures contracts, which expire in September, fell as much as 1.2% after China's central bank weakened its daily currency fix past key levels, speculating that Beijing let exchange rate depressions counteract President Donald Trump's latest tariff threat. contracts plunged as much as 1
Losses in Asian markets intensified after Bloomberg reported that China asked its state-owned companies to halt imports of US agricultural products in response to Trump's latest tariff proposal. On Thursday, the US president proposed adding 10% duty rates for another $ 300 billion in Chinese imports.
"It has become clear that despite the economic power of the trade war is very clear, and a quick resolution very desirable, the policy for it has become fresher," said Michael McCarthy, chief strategist for CMC Markets.
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