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As the latest round of US tariffs on China, a 10% levy targeting $200 billion in imported goods, comes into play starting at midnight Washington DC time, China is flat-out rejecting proposals for trade talks with the US.

The US Senate is set to impose further sanctions on China after Shanghai was found to be buying jets, missiles, and other weaponry from a Russian weapons exporter that landed on the US’ no-fly list in sanctions against Russia, and the US is set to punish China for running business with the black-balled corporation. In relation, China has entrenched itself in the current stage of the US-Sino trade war, and turned down the possibility of negotiations between the two sides in the immediate future.

The move threatens to skewer risk appetite heading into the new week, as thin volumes at the Monday bell sees markets exposed to volatile jumps as the early birds flee from riskier assets on bearish headlines that are pointing towards continued trade angst in the weeks to come.