Dow Jones on Edge as Tense China Diplomacy Nears Breaking Point

  • Dow Jones Industrial Average (DJIA) futures turned negative on Thursday, pointing to a weak open on Wall Street.
  • The White House and US intelligence agencies ramped up attacks on China over the coronavirus epidemic.
  • The conflict threatens to destabilize relations between the two super-powers and impact trade.

The U.S. stock market looks set for a nervous open on Thursday as Dow Jones Industrial Average (DJIA) futures swung wildly overnight.

Tensions between America and China are reaching boiling point as Secretary of State Mike Pompeo came out swinging last night. He began by accusing China of covering up the severity of the coronavirus outbreak.

[China] covered up how dangerous the disease is. It didn’t report sustained human-to-human transmission for a month until it was in every province inside of China. It censored those that tried to warn the world. It ordered a halt to testing of new samples and it destroyed existing samples.

In a later interview he further legitimized the conspiracy that a Wuhan virology lab may have some involvement in the virus.

Even today, the Chinese government hasn’t permitted American scientists to go into China, to go into not only the Wuhan lab but wherever it needs to go to learn about this virus, to learn about its origins.

The rising conflict between the two nations threatens to reignite the trade war.

Dow swings wildly ahead of jobless claims data

Dow futures contracts looked nervous overnight, swinging in and out of positive territory. After an initial drop, the market is now flat ahead of Thursday’s jobless claims report. Analysts expect a further 4 million unemployed for a total of 25 million since the crisis began.

After a choppy overnight session, Dow Jones Industrial Average (DJIA) futures point to a flat open. Source: Yahoo Finance

S&P 500 futures and Nasdaq Composite futures were up 0.2% and 0.09% respectively.

White House gets aggressive on China

In a blistering statement, Pompeo blamed both the World Health…

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