Dow Jones Industrial Average futures point to more gains ahead of a holiday-shortened trading week.
With just three weeks remaining before new tariffs escalate the trade war further, relations between the US and China appear to be moving in the wrong direction.
Futures tracking Wall Street’s three major indices all rose when the markets opened Sunday night.
Dow Jones Industrial Average futures climbed 50 points or 0.18%, implying a 63.38 point advance at the open.
S&P 500 futures rose 0.2%, while Nasdaq futures jumped 0.25% to round out a bullish pre-market session.
President Donald Trump may say the US and China are “very close” to finalizing a trade deal, but the two economic superpowers continue to trade barbs three weeks before the next round of tariff hikes.
Speaking at a G20 meeting in Japan, Chinese State Councillor Wang Yi torched the US as the “world’s biggest destabilizing factor.”
“The United States is broadly engaged in unilateralism and protectionism, and is damaging multilateralism and the multilateral trading system. It has already become the world’s biggest destabilizing factor,” Wang said, according to China’s Foreign Ministry.
Wang, China’s top-ranking diplomat, alleged that the US must stop playing “zero-sum games” and pursue a compromise that benefits both Washington and Beijing.
There is no way out for the zero-sum games of the United States. Only win-win cooperation between China and the United States is the right path.
Not to be outdone, the Trump administration levied its own assault on Beijing. During a visit to Canada on Saturday, US national security adviser Robert O’Brien said that a trade deal was “still…possible.” But gone was the confidence from exuding from Trump’s remarks on Friday.
Adding further pressure to the Dow, O’Brien warned Beijing that the White House would not ignore the plight of Hong Kong’s pro-democracy protesters, who continue to demonstrate under the ever-present threat of violent government suppression.
“We were hoping to have (a phase one) deal done by the end of the year. I still think that’s possible,” he said. “At the same time, we’re not going to turn a blind eye to what’s happening in Hong Kong…or other areas of the world where we’re concerned about China’s activity.”
Already, the US Congress has passed a bill that condemns China for its suppression of democracy in Hong Kong.
The Hong Kong Human Rights and Democracy Act, which received unanimous support in the Senate and all but one vote in the House, would impose sanctions on Chinese officials accused of perpetrating human rights abuses against protesters.
Trump has said that he may veto the legislation, though it should have enough support in Congress for lawmakers to override his veto. The president is concerned it could negatively affect trade negotiations, which is confirmed by Beijing’s withering response to the act’s passage.
There are no US data releases scheduled for Monday, and due to the Thanksgiving holiday, none will drop on Thursday or Friday either. But that doesn’t mean that Wall Street will have any less data to pore over this week.
Here are the highlights (all times ET):
Last modified: June 23, 2020 2:33 PM UTC