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Trade War Returns Stocks Sell-Off

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WORLD HEADLINES – U.S. stock futures extended declines in New York as jitters over trade war tensions between the U.S. and China further escalated.

STOCKS – Futures on the S&P 500 Index fell as much as 1.7 percent after Beijing said the charges will apply to around $50 billion of U.S. imports, matching the scale of proposed U.S. tariffs announced Tuesday.

BONDS – The yield on 10-year Treasuries declined two basis points to 2.75 percent.

COMMODITIES –  Risk-off sentiment pushed gold higher 0.7 percent to $1,342 an ounce, recovering some of Tuesday’slosses

CURRENCIES – The Japanese yen jumped 0.5 percent to 106.06 per dollar, the largest climb in almost two weeks.

ECONOMIC DATA – US ADP Non-Farm Employment Change  due at 8:15,  ISM Non-Manufacturing PMI at 10:00,  Crude Oil Inventories at 10:30,  FOMC Member Mester Speaks at 11:00 ET.

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