U.S. stock index futures turn sharply negative on Tuesday after President Donald Trump said a China trade deal may not happen until after the 2020 election.
Around 5:30 a.m. ET, Dow futures indicating a drop of about 100 points at the open, after trading slightly higher earlier in the session. Futures on the S&P and Nasdaq were also both lower.
President Trump said early Tuesday that it might be better to wait until after the 2020 election to strike a trade deal with China. "In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now and we will see whether or not the deal is going to be right," Trump told reporters in London.
When asked if he had a deal deadline, he added: "I have no deadline, no ... In some ways, I think it is better to wait until after the election if you want to know the truth."
Markets were already rattled following President Trump's call on Monday to impose steel and aluminum tariffs on imports from Brazil and Argentina. The U.S. president suggested the move was necessary because Brazil and Argentina had been "presiding over a massive devaluation of their currencies."
However, in recent months, both countries have been seeking to strengthen their respective currencies against the dollar.
The South American trade tariffs have rekindled broader concerns about a protracted dispute between the U.S. and China, with investors monitoring the prospect of a limited agreement.
Ahead of his trip to London on Monday, Trump said he was "very happy" the world's two largest economies were holding talks to try to secure a so-called "phase one" agreement. The U.S. president has joined other world leaders in the U.K.'s capital city to mark the 70th anniversary of NATO.
Washington and Beijing have imposed tariffs on billions of dollars' worth of one another's goods since the start of 2018, battering financial markets and souring business and consumer sentiment.
Data, earnings
On the data front, the latest quarterly financial report will be released at 10 a.m. ET, with light vehicle sales figures for November set to follow slightly later in the session.
In corporate news, Bank of Montreal and Donaldson are both set to report earnings before the opening bell. Salesforce.com and Marvell Technology are among the companies scheduled to report their latest figures after market close.
https://www.cnbc.com/2019/12/03/stock-market-wall-street-in-focus-amid-south-america-trade-tariffs.html
2019-12-03 07:49:00Z
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