China to impose sanctions on US’ Lockheed Martin over the Taiwan issue – Reuters
|Reuters is out with the latest headlines, citing that China is considering imposing sanctions on the US’ defense company, Lockheed Martin, in response to planned arms sales to Taiwan.
This comes a day after Beijing announced tit-for-tat sanctions against four US officials, including senators Ted Cruz and Marco Rubio, after Washington imposed visa restrictions on Chinese officials over the treatment of the Uyghur community in the northwestern province of Xinjiang.
Market reaction
The above headlines are adding to the risk-off market mood, with the European equities down nearly 2% in the opening hour. S&P 500 futures reverse gains and trades flat around 3150.
AUD/USD drops 0.15% to trade near session lows of 0.6921 while USD/JPY trades around 107.25.
The escalating US-China row over multiple issues is likely to keep the haven bids for the US dollar underpinned. The US dollar index gains 0.20% to a daily high of 96.70.
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