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  • Falling crude oil prices weigh on the S&P 500 Energy Index.
  • China will reportedly wait for US election before signing a trade deal.
  • Defensive sectors posts modest gains in early trade.

Major equity indexes in the United States started the week on the back foot as investors continue to asses the latest developments surrounding the United States (US)-China trade dispute. As of writing, the Dow Jones Industrial Average was down 0.04% on the day while the S&P 500 and the Nasdaq Composite were erasing 0.22% and 0.38%, respectively.

Earlier in the day,  CNBC’s Beijing Bureau Chief, Eunice Yoon, reported China was pessimistic about reaching a trade deal with the US after President refrained from confirming the tariff rollback. Yoon further said that China might opt out to wait for the impeachment and the presidential election in the US.

With the dismal mood weighing on crude oil prices, the Energy Index turned south and was last down 1.4% on a daily basis. Reflecting the sour sentiment, the 10-year US T-bond yield is losing 1.7% and the rate-sensitive Financials Index is erasing 0.3%.  

On the other hand, so-called defensive sectors, Real Estate and Utilities, are both up more than 0.7% in the early trade.