Dow Futures Reverse Gains as U.S.-China Tensions Simmer


  • Dow futures give up modest gains as stocks turn lower in overnight trading.
  • The Dow is riding a three-day winning streak on vaccine optimism and stronger than expected data.
  • Tensions between the United States and China show no signs of easing.

Futures on the Dow and broader U.S. stock market reversed course Wednesday night, as geopolitical tensions between China and the United States continued to reverberate.

The world’s two biggest superpowers are locking horns on issues ranging from Hong Kong to Huawei and up to the South China Sea.

How To Get Free Crypto  

Dow, S&P 500, Nasdaq Futures Tumble

Futures on all three major U.S. indexes pivoted lower Wednesday evening, reversing earlier gains. Dow Jones futures fell 45 points or 0.2%. S&P 500 futures declined 0.2%. The Nasdaq 100 mini futures contract is off 0.6%.

Dow futures reversed modest gains Wednesday night. | Chart: Yahoo Finance

U.S. stocks are coming off a breakout session that saw all three majors post sizable gains. The S&P 500 Index is back to trading above 3,200 for the first time since June, while the Nasdaq is approaching another all-time high.

The CBOE Volatility Index, commonly known as the VIX, also fell for a second straight day. The VIX closed at 27.76 in New York trading.

U.S.-China Tensions Far Exceed Trade Dealings

Sino-American relations took another turn for the worse last month after China implemented a new security law for Hong Kong. The legislation, which was passed without much consideration from Hong Kong authorities, grants Beijing broad powers to crack down on so-called “grave” political offenses.

Coinbase Banner  

In response, President Trump has ended Hong Kong’s special trading privileges and launched new efforts to isolate Huawei, China’s telecom behemoth.

In a Tuesday press conference, President Trump said:

Today I signed legislation, and an executive order to hold China accountable for its aggressive actions against the people of Hong Kong.

He added:

Hong Kong will now be treated the same as mainland China – no special privileges, no special economic treatment, and no export of sensitive technologies.

According to Secretary of State Mike Pompeo, the United States will restrict entry visas for employees of Huawei and other Chinese companies involved in human rights abuses:

Telecommunications companies around the world should consider themselves on notice: If they are doing business with Huawei, they are doing business with human rights abusers.

In response, China has warned it will impose new sanctions on U.S. personnel and other entities.

Washington is also rejecting China’s claims in the South China Sea, a region known for its importance to global maritime trade. Earlier this week, the Department of State issued a press statement outlining its position on maritime claims in the region.

The press release asserts that China has used “intimidation to undermine sovereign rights of Southeast Asian coastal states” in the area.

FreeBitcoin Banner  

Go to Source
Author: Sam Bourgi


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.