U.S. Futures Slump as China Hits Back at U.S. on Trade, Currency By Investing.com

© Reuters.

Investing.com – U.S. futures slumped on Monday as China retaliated against the U.S. by and letting the depreciate.

The yuan slipped below 7 per U.S. dollar for the first time since 2008 at one stage. Even though the People’s Bank of China set the daily midpoint of the currency’s trading band at 6.9225 per dollar, the market is so tightly controlled as to give the day’s trading range a quasi-official seal of approval.

The moves come only days after U.S. President Donald Trump proposed another 10% tariffs on the remainder of all U.S. imports of Chinese goods, worth about $300 billion. Trump has often accused China of weakening its currency to make exports cheaper and getting an unfair advantage in trade, which Beijing denies.

fell 132 points or 1.7% by 6:41 AM ET (10:41 GMT), while lost 324 points or 1.2% and were down 38 points or 1.3%.

The escalation of the trade war may overshadow the U.S. earnings season, which continues Monday with Tyson Foods (NYSE:), Loews (NYSE:) and others.

Technology stocks were down in premarket trade, with Facebook (NASDAQ:) slumping 2.3%, Tesla (NASDAQ:) down 2.3% and Microsoft (NASDAQ:) falling 1.9%. Apple (NASDAQ:) slipped 2.3%, while Cisco (NASDAQ:) declined 1.2% and Intel (NASDAQ:) lost 1.4%.

JP Morgan Chase (NYSE:) was down 1.8%, while Caterpillar (NYSE:) fell 1.4% and Ford Motor Company (NYSE:) lost 1.5%.

HSBC Holdings (LON:) PLC ADR (NYSE:) slumped 1.9% after news that its CEO John Flint has stepped down after 30 years at the bank, with less than a year-and-a-half as its chief executive.

On the economic front, the IHS is released at 9:45 AM ET (13:45 GMT), while the ISM comes out at 10:00 AM ET (14:00 GMT).

In commodities, fell 0.8% to $55.20 a barrel. gained 0.8% to $1,468.75 a troy ounce, while the , which measures the greenback against a basket of six major currencies, dipped 0.3% to 97.572.

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