Asian Equity Market Handover Nuked down by Trump tariffs threat

Stock market snapshot as of [06/5/2019 0638 GMT]

• Across the board sell-off seen in Asian stock markets triggered by U.S. President Trump’s overnight tweet that threatened China with steeper tariffs citing slow progress in trade negotiation talks. Trump also stated to increase tariffs on US$200 billion of Chinese imports to 25% from 10% on Fri.
• China A50 is the worst performer so far in today’s Asian mid-session as it plunged by -4.9% after the China cash stock market reopened for trading from a 3-day break since last Wed, 01 May. In addition, the drop in Chinese stocks has also been reinforced by a sharp rally seen in the USD/CNH where it has spiked up by close to 800 pips for an intraday break above 6.80 from last Fri’s U.S. session close of 6.7345. Japan cash stock market will resume trading tomorrow, 07 May after an extended Golden Week holiday since 29 Apr.
• The S&P 500 E-min futures also dropped by close to 2% to print a current intraday low of 2891 that erased the recovery seen late last week. Right now, major stock indices face the risk of undergoing a multi-week corrective decline. Click here to view our latest weekly technical outlook report.
• U.K cash stock market will be close for a bank holiday today. The German DAX futures has also recorded a significant drop so far by 1.9% and shows a potential threat to violate the 12100 support.

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*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.