(Bloomberg) — Asian stocks and U.S. futures slid along with the yuan after a Trump administration official described the Sino-American trade deal as “over.”Treasuries climbed and crude oil dropped after Trump aide Peter Navarro said “it’s over,” when asked in a Fox News interview about the trade agreement with China. S&P 500 futures, which had opened higher, dropped over 1%. While Navarro didn’t specify whether the entire deal signed in January was now invalid, his remark revived concerns about deteriorating U.S.-China ties. The risk-off moves Tuesday morning followed what had been a constructive session on Wall Street Monday, when equities climbed as investors continued to bet on companies with strong balance sheets and better prospects in work-from-home economy. The Nasdaq 100 jumped more than 1%, and the Nasdaq Composite capped a seventh straight advance in its longest rally of the year.Influential investors had added to the positive sentiment prior to Navarro’s comments. Steve Schwarzman, chief executive officer of Blackstone Group Inc., said the economy is likely to benefit from a V-type recovery in the next few months, though getting back to 2019 level will take “quite a while.” Hedge fund manager Bill Ackman said he sees gradual improvement on all fronts with so many resources poured into the health-care crisis.Here are some key events coming up:MSCI Inc. on Tuesday announces its market classification review for 2020.The IMF will release new 2020 growth projections on Wednesday.U.S. jobless claims, durable goods and GDP data are due Thursday.A rebalance of Russell indexes is due on Friday.These are the main moves in markets:StocksS&P 500 futures declined 1.4% as of 10:43 a.m. in Tokyo. The S&P 500 Index climbed 0.7%.Topix index fell 0.5% after rising as much as 0.8% earlier.Hang Seng Index fell 1.1%.Shanghai Composite Index fell 0.3%.Kospi Index dropped 0.6%.CurrenciesThe Japanese yen edged up 0.1% to 106.81 per dollar.The offshore yuan fell 0.3% to 7.0820 per dollar.The euro was down 0.2% at $1.1239.BondsThe yield on 10-year Treasuries fell about two basis points to 0.68%.Australian 10-year yields ticked up to 0.88%.CommoditiesWest Texas Intermediate crude slid 1.9% to $40 a barrel.Gold rose 0.1% to $1,756 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
