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    Futures point to Dow opening more than 250 points lower amid US-China trade turmoil

    Futures on Sunday evening pointed to a lower open for stocks stateside when they open on Monday.

    Dow Jones Industrial Average futures dropped 281.00 points, implying an opening decline of 276.01 points on Monday's open, as of 1:03 a.m. ET Monday. Futures also pointed to opening declines for the S&P 500 and Nasdaq on Monday.

    The moves came amid market turmoil in the Asian trading session on Monday, with Hong Kong's Hang Seng index dropping nearly 3% and Japan's Nikkei 225 falling more than 2.5%. The MSCI Asia ex-Japan index also fell more than 2%.

    U.S. Treasurys also saw large movements, with the yield on the closely-watched 10-year Treasury note falling to as low as 1.763%. It was last at 1.7803% as of 1:18 a.m. ET Monday.

    Markets were sent on a whirlwind late last week after tensions between Washington and Beijing re-escalated, when U.S. President Donald Trump unexpectedly announced on Thursday that America will be slapping 10% tariffs on another $300 billion worth of Chinese goods starting Sept.1.

    Trade uncertainty sent the Chinese yuan lower on Monday, with the currency breaching a key psychologically important level of 7 yuan-per-dollar. The level was last breached during the global financial crisis in 2008, according to Reuters. The onshore yuan last changed hands at 7.0289, while its offshore counterpart traded at 7.0843.

    "The (People's Bank of China) has allowed the renminbi to fall to its weakest level in a decade in response to trade tensions, " Julian Evans-Pritchard, senior China economist at Capital Economics, wrote in a note. "It appears to have decided that, given the increasingly dim prospects of a trade deal with the US, the boost to China's export sector from currency depreciation is worth attracting the ire of the Trump."

    "The fact that they have now stopped defending 7.00 against the dollar suggests that they have all but abandoned hopes for a trade deal with the US," Evans-Pritchard said.

    Amid the trade turmoil, the S&P 500 saw its worst weekly drop of 2019 last week, falling 3.1%. The Dow Jones Industrial Average had its second-worst week of the year, declining 2.6%.

    Global markets also tumbled last Friday, with Japan's Nikkei 225 and Hong Kong's Hang Seng index dropping more than 2% each, while losses were also seen in Europe.

    — CNBC's Fred Imbert contributed to this report.


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