It's a rough start for risk assets on the day
Asian equities are being beaten down as US equity futures lead the way lower for risk assets on the day. With trade war worries between US and China already showing fading optimism, the Huawei news overnight surely doesn't help with that. China will definitely call for a trial not to be held but let's see how the US will respond on the matter later on. This will only serve to complicate trade matters surely.
Anyway, Chinese stocks are also much lower on the day with the Hang Seng down by 2.8% while the Shanghai Composite index currently lower by 1.6%. S&P 500 futures are trading by 1.2% lower on the day as well and Treasury yields are also continuing their track lower.
All that put together is making for a tough time for risk assets i.e. oil, aussie, kiwi but is helping to fuel bids in the Japanese yen ahead of European trading.
