China says to sanction Boeing Defense, Lockheed Martin over Taiwan arms sale

China's foreign ministry with the announcement

This will only add to the softer risk mood that we're experiencing to start European morning trade, as US-China tensions continue to escalate ahead of the election.

S&P 500 futures have slipped to a session low now, down by 1.1%. Meanwhile, the dollar is gaining further alongside the yen with AUD/USD down to 0.7105.