Having taken a day off to watch Bush’s funeral – drifting modestly higher before the early close – reports of the arrest of Huawei’s CFO at the request of US authorities has sparked carnage at the re-open.
As we detailed earlier, mere hours after Chinese officials finally affirmed President Trump’s description of Saturday’s trade ‘truce’ – this after fears that the true nature of the agreement might have been “lost in translation” helped trigger the worst one-day market selloff since October – the DOJ has gone ahead and kicked the hornet’s nest, seriously jeopardizing the prospects for a prolonged trade detente between the world’s two biggest economies.
Dow futures were down over 500 points as they opened…
The selling is across all the major US index futures…
For now there is no reaction in Yuan or Treasuries.
For now it appears that the trade truce is back to square one zero, leaving Trump with a choice: releasing Meng or watching the any last hopes of Christmas rally fade into the distance.
via RSS https://ift.tt/2E4T1Bp Tyler Durden