S&P 500 futures drop 1 percent as markets digest Cohn's resignation

• Trump top economic aid Gary Cohn resigned. 
• S&P 500 futures dropped as investors digest increased odds of a trade war. 

The risk assets came under pressure in early Asia on fears Cohn's resignation will strengthen protectionist forces in the US.

As of writing, the S&P 500 futures are down 1.17 percent at 2691. At one point, the futures were down 1.4 percent. Meanwhile, Dax futures are down 0.98 percent and FTSE 100 futures have dropped 0.72 percent. Also, stocks in Australia, Hong Kong, and India are reporting losses. Further, the 10-year treasury yield has dropped close to two basis points. 

The sell-off in equities would gather pace if Cohn is replaced by a trade hawk.