Update (2245ET): China's Vice Premier Liu told online news provider Cailian that China has enough macro-economic policy tools to ensure sound economic fundamentals and "firmly opposes escalation of the trade war" (which is ironic given that they just did); and suddenly Yuan and USDJPY spikes, US equity futures surge, and gold slides...

Right on cue...US equity futures have almost erased their losses...

Yuan spikes and USDJPY has erased all of its losses...

And gold is offered heavy...

* * *

In early Asia trading, offshore yuan has extended Friday's collapse, testing the lower edge of the PBOC's Yuan trading band once again.

Yuan traded as weak as 7.1925 against the USDollar...

Source: Bloomberg

Pressuring the weaker end of the Yuan peg band...

Source: Bloomberg

At the same time, USDJPY is tumbling (Yen strength), testing the lows of the flash-crash from early January...

Source: Bloomberg

Spot Gold has exploded higher, testing $1550...

Source: Bloomberg

With gold rising and yuan plunging, the Chinese currency is at its weakest against the precious metal since 2012...

Source: Bloomberg

US Equity futures are reeling with Dow Futures down over 400 more points...

Treasury futures opened up dramatically, implying a 10Y yield of around 1.36% (around 8bps lower in yield).

Source: Bloomberg

And oil prices are plunging...

Turmoil is coming.