S&P 500 Futures: Drop to lows after US Pres. Trump signs executive orders against WeChat, TikTok
Amid US fiscal standoff, the risk sentiment is receiving another blow on the US-China front, as US President Donald Trump signs two executive orders against two Chinese applications (apps).
The move is to address the security threats posed by TiktTok and WeChat.
President Trump signed the order on ByteDance to divest TikTok.
Additional details
Trump has signed an executive order beginning in 45 days halting any and all the transactions with ByteDance.
“Any company still doing business with TikTok in 45 days is subject to sanctions.”
“It may be used for disinformation campaigns that benefit the Chinese Communist Party.”
“The US must take aggressive action against the owners of TikTok to protect our national security.”
S&P 500 Futures hit lows
With the market mood worsening, the risk gauge, S&P 500 futures quickly retraced from highs and hit session lows near 3338 on the above announcement.
The US futures trade with modest losses amid negative Asian equities.
AUD/USD, in the meanwhile, remains pressured around 0.7225 following RBA’s Statement on Monetary Policy (SoMP).
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.
