S&P 500 Futures at daily lows, as US says China's Houston consulate closure is to protect IP

Dhwani Mehta FXStreet

Adding to escalating US-China worries and the resultant worsening of the risk sentiment, the US State Department Spokesperson Ortagus said on Wednesday, “we have directed the closure of PRC consulate general Houston, in order to protect American intellectual property and American’s private information.”

Additional comments

“Will not tolerate China's violation of the US' sovereignty.”

“Trump insists on fairness and reciprocity in US-China relations.”

The US State Department now accuses China of the theft of trade secrets and private information. On Tuesday, Secretary of State Mike Pompeo accused Beijing of exploiting the coronavirus outbreak to further its own motives.

In response to the US’ demand to close China’s Houston consulate, Beijing said, “the unilateral closure of China’s consulate-general in Houston within a short period of time is an unprecedented escalation of its recent actions against China.”

S&P 500 Futures at two-day lows

S&P 500 futures wiped-out gains and now drops 0.70% to print two-day lows near 3,230, as the risk sentiment soured on the renewed US-China tensions.

The risk gauge hit a fresh five-month high at 3,272 on Tuesday.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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