S&P 500 futures drop further as China says there is standstill in US-Sino relations

Dhwani Mehta FXStreet

In a scheduled meeting with US Deputy Secretary of State Wendy Sherman, China's Vice Foreign Minister Xie Feng said that the standstill in US-Sino relations was due to some people in America treating Beijing as an "imaginary enemy”.

Xie urged the US to correct its "extremely wrong mindset and extremely dangerous China policy.

Additional quotes

China is willing to deal with the US on an equal footing.

Want to seek common ground, shelve difference with the US.

The US wants to change international rules to bully the weak.

The US is in no position to talk about human right issues in front of China..

China's counter measures legitimate, reasonable.

Sherman, the US’ No. 2 diplomat, is set to meet China’s Foreign Minister Wang Yi on Monday in Tianjin, about 60 miles east of the capital Beijing, where she is expected to say that while Washington welcomes competition with Beijing, there needs to be a level playing field to ensure that it does not veer off into conflict, a senior US official said on Saturday.

Market reaction

Amid US-Sino headlines, the risk sentiment remains tepid, exacerbated by the fall in the Chinese stocks.

The S&P 500 futures is down 0.33% on the day at 4,397 while AUD/USD is dropping 0.14%, testing lows near 0.7350, as of writing.

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.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold falls to near $5,100 as inflation fears weigh amidst Middle East conflict

Gold price faces some selling pressure near $5,100 during the early Asian session on Wednesday. The precious metal falls amid a renewed US Dollar demand and dimming prospects for US rate cuts. The US ISM Services Purchasing Managers Index report will be published later on Wednesday.