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

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.