1. China talks tough on HK, underlining trade impasse

China ramped up its criticism of the bill passed by the Senate earlier this week tying China’s trade preferences in the U.S. to its respect for Hong Kong’s political autonomy. Reports suggest the bill will be sent to President Donald Trump today for signing.

"If the U.S. side obstinately clings to its course, the Chinese side will inevitably adopt forceful measures to take resolute revenge, and all consequences will be borne by the United States," the Communist Party’s People’s Daily said in a front-page editorial.

Trump indicated on Wednesday that the administration is considering exempting Apple (NASDAQ:AAPL) from the increase in import tariffs on Chinese goods that is scheduled to come into force on Dec. 15. That would make it easier for the hike in import duties to go ahead, given that it would pre-empt a sharp rise in iPhone prices that would be highly visible evidence of the negative impact of tariffs on U.S. consumers.

Trump also said China wasn’t “stepping up” as he hoped as regards ongoing trade talks. China’s Commerce Ministry said it would keep all communications channels with the U.S. open, but Reuters sources said there is a growing risk that no deal will be signed this year.

2. More retailers to report as stocks edge lower

U.S. stock markets are on course to open the day slightly lower, after overnight news from China underlined the obstacles to reaching a ‘phase-1’ deal to de-escalate trade tension in the short term.

By 5:45 AM ET (1045 GMT), the futures on all three main U.S. indices were down less than 0.1%, with Dow futures a modest 11 points in the red.

A day after weak results from Kohl's (NYSE:KSS) sent a shudder through the sector, it’s show time for another handful of battered retailers.

Macy’s Inc (NYSE:M) and BJs Wholesale Club Holdings Inc (NYSE:BJ) get the ball rolling ahead of the open, while Nordstrom Inc (NYSE:JWN), Gap Inc (NYSE:GPS) and Ross Stores Inc (NASDAQ:ROST) round off what should be an eventful day after the closing bell. Jack In The Box Inc (NASDAQ:JACK), Splunk Inc (NASDAQ:SPLK) and Williams-Sonoma Inc (NYSE:WSM) are also all scheduled to report.

3. Impeachment Hearings

Impeachment hearings are set to continue in front of the House Intelligence Committee at 9 AM ET, with testimony from former White House Russia expert Fiona Hill and David Holmes, an official with the U.S. embassy in Kyiv.

Their testimony, in the last hearing scheduled for this week. will build on some explosive disclosures Wednesday by Gordon Sondland, a former Trump donor who is now Ambassador to the EU. Sondland said he had pressed Ukraine to announce investigations into the son of Joe Biden at the “express direction” of Trump, adding that “everyone was in the loop”, including Secretary of State Mike Pompeo.