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Carnage Continues: US Futures Crash At Re-Open After Huawei CFO Arrest

Summary:
Update: Huawei, in a statement, said the arrest was made on behalf of the U.S. so Meng could be extradited to “face unspecified charges” in the Eastern District of New York. “The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng,” Huawei said. “The ...

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Update: Huawei, in a statement, said the arrest was made on behalf of the U.S. so Meng could be extradited to “face unspecified charges” in the Eastern District of New York.

“The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng,” Huawei said.

“The company believes the Canadian and U.S. legal systems will ultimately reach a just conclusion. Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, U.S. and EU.”

*  *  *

Having taken a day off to watch Bush's funeral - drifting modestly higher before the early close - reports of the arrest of Huawei's CFO at the request of US authorities has sparked carnage at the re-open on extremely heavy volume...

Carnage Continues: US Futures Crash At Re-Open After Huawei CFO Arrest

As we detailed earlier, mere hours after Chinese officials finally affirmed President Trump's description of Saturday's trade 'truce' - this after fears that the true nature of the agreement might have been "lost in translation" helped trigger the worst one-day market selloff since October - the DOJ has gone ahead and kicked the hornet's nest, seriously jeopardizing the prospects for a prolonged trade detente between the world's two biggest economies.

"Wanzhou Meng was arrested in Vancouver on December 1. She is sought for extradition by the United States, and a bail hearing has been set for Friday," Justice department Ian McLeod said in a statement to The Globe and Mail. "As there is a publication ban in effect, we cannot provide any further detail at this time. The ban was sought by Ms. Meng.

Carnage Continues: US Futures Crash At Re-Open After Huawei CFO Arrest

Trade truce over?

“If that arrest is linked with tech theft, etcetera, then I don’t think that translates well for China U.S. relations. Timing is very interesting. On one hand we have the U.S. stating that talks are going really well with China and then on the other we have them trying to prosecute the CFO of one of its biggest IT firms," says Nick Twidale, chief operating officer at Rakuten Securities’ Australian unit

Dow futures were down over 500 points as they opened... (NOTE that Dow futures pushed up during the day to test the 200DMA)

Carnage Continues: US Futures Crash At Re-Open After Huawei CFO Arrest

 

The selling is across all the major US index futures...

Carnage Continues: US Futures Crash At Re-Open After Huawei CFO Arrest

For now there is only a modest reaction in yuan (weaker)...

Carnage Continues: US Futures Crash At Re-Open After Huawei CFO Arrest

For now it appears that the trade truce is back to square one zero, leaving Trump with a choice: releasing Meng or watching the any last hopes of Christmas rally fade into the distance.

Tyler Durden
Tyler Durden (a pseudonym) represents the idea that a return to truly efficient markets is a possibility and a necessity. After having experienced the inner workings of capitalism at various asset managers and advisors, Tyler believes that the current model is flawed and a deleveraging at every level of modern society is needed to reinspire the fundamental entrepreneurial spirit. Visit his blog: ZeroHedge (http://www.zerohedge.com/)

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