Stocks, Yuan, Bond Yields Tumble On “Pessimistic” Reports From China On Trade Deal

After surging overnight, US equity futures are tumbling on reports that China is less optimistic about a deal with US as Hong Kong tensions soar.

CNBC’s Eunice Yoon tweets:

“Mood in Beijing about #trade deal is pessimistic, government source tells me. #China troubled after Trump said no tariff rollback. (China thought both had agreed in principle.) Strategy now to talk but wait due to impeachment, US election. Also prioritize China economic support.”

The result is clear, stocks are tumbling…

As is the yuan…

Source: Bloomberg

And Treasury yields are also plunging…

Source: Bloomberg

And at the same time, tensions in Hong Kong are reaching a tipping point that will likely force division between Trump and Xi, no matter how much the former would prefer to ignore it.