U.S. stock index futures were piercingly depressed Tuesday morning after the world’s two largest economies started forcing new tariffs on one another’s goods.
Dow futures showed a disruptive opening of more than 250 points. Futures on the S&P and Nasdaq had been each lower. The drops came after traders observed a market holiday on Monday.
The U.S. imposed 15% tariffs on a wide range of Chinese goods and items on Sunday, whereas China imposed new fees on U.S. products from September 1. It marked the latest escalation in their long-running trade war.
The U.S. and China have inflicted duties on billions of dollars’ price of one another’s goods since 2018, beating financial markets and bittering business and client sentiment.
President Donald Trump has stated officers from both sides were still planning to fulfill later this month, regardless of rising tensions.
On Monday, Beijing filed a complaint towards Washington on the World Trade Organization over U.S. import duties. China claimed the latest round of tariffs infringed a consensus reached by leaders of both countries in G7.
U.K. lawmakers return from a summer recess on Tuesday, with a cross-party group of MPs demanded to use for an emergency debate and secure control of the program of the House of Commons.
The transfer is a try to cease a so-called “no-deal” Brexit on October 31, which is seen as a “cliff-edge” situation to be thwarted at all costs.
Prime Minister Boris Johnson could call for a snap general election if opposition lawmakers vote against a no-deal Brexit this week.
Sterling fell below $1.20 on Tuesday morning, reaching levels not seen since October 2016.