S&P 500 Futures turn red as China plans further HK crackdown

Early Tuesday, Reuters came out with the news, relying on anonymous sources, which convey Chinese plans to extend the Hong Kong crackdown following the arrests of nearly 50 democrats during last week.

“While stressing that plans haven’t been finalized, the individuals said it was possible that Hong Kong elections - already postponed until September on coronavirus grounds - could face reforms that one person said were aimed at reducing the influence of Democrats,” said the report.

Risk fizzles amid escalation in US-China tussle…

American dislike for Beijing’s power-play in Hong Kong has been famous and the latest news could push Washington to retaliate at a time when the Trump administration is said to, per Reuters, plan for further sanctions on China. On the other hand, the American drive to establish close ties with Taiwan may tease the dragon nation and can trigger a tit-for-tat show.

While the risks have reacted to the news with S&P 500 Futures turning red below 3,800, major attention is on the US politics surrounding President Trump’s impeachment and covid stimulus. Also in the spotlight are news relating to the coronavirus (COVID-19) and vaccine that can entertain markets amid a light calendar.