China’s proposed countermeasures prompted U.S. stock index futures to tumble ahead of Wednesday’s open. At around 5:15 a.m. ET, Dow futures sank 419 points, indicating a drop of 438.36 points at the open. The Nasdaq along with also the S&P 500 futures also indicated heavy losses at the open for their respective markets.
Meanwhile, Wednesday’s announcement also prompted European stocks to extend losses, with the pan-European Stoxx 0 hitting a session low of 0.8 percent shortly after the news.
“I think Beijing can be very keen to show in which in which can be not going to be bullied too,” Neil Dwane, global strategist at Allianz Global Investors, told CNBC on Wednesday.
“(China) can be going to position This particular as them responding to American aggression rather than necessarily being part of the problem,” he added.
The Chinese yuan also suffered its biggest daily fall against the dollar in two weeks after the measures were proposed. The currency slipped 0.4 percent to hit 6.3015 per dollar.