US stock futures climbed after Fed signal support began to ease

U.S. stock futures hinted at Wall Street gains on Thursday, when the Federal Reserve made no surprise push at its policy meeting, and shares of troubled property giant China Evergrand climbed in Hong Kong.

How is stock-index futures trading?
  • Dow Jones Industrial Average Future YM00
    186 points or 0.5% increase to 34,316

  • S&P 500 Future ES00
    26 points or 0.6% increase to 4,410

  • Nasdaq-100 Future NQ00
    96 points or 0.6% increase to 15,257

On Wednesday, the Dow Jones Industrial Average DJIA
3388 points or 1% increase to 34258, S&P 500 SPX
4396, up 41 points or 0.95%, and the Nasdaq Composite Comp
1 points0 points or 1.02% gain 18.

Read: It’s really easy to navigate this stock market, said a Buffa Star strategist. Here’s what he says to do

What is driving the market?

Stock futures were rising a day after the Fed promised to support the economy and financial markets for the time being with its bond-buying program and excessive interest rate regime.

However, Fed Chair Jerome Powell said plans to reduce the central bank’s bond-buying program could be announced in November, and officials also envisioned raising interest rates in 2022. Observer.

Read: Economists say Hawker manages pepper in the Fed

Scott Reusterholz, a portfolio manager at Insight Investments, said: “It’s impossible to repeat the taper tantrum that hurts both equity and fixed income in 2013, because it’s so clear about how slowly the Fed is slowly removing support.” $ 1 trillion assets under management.

“Although the Fed’s tailwind for the market is declining, it remains a tailwind. The financial system is linked to significant excess liquidity, which must continue to provide stable returns and strong technical support for the market, ”Reusterholz said in an emailed comment.

Markets will receive a large batch of data for Thursday, including the weekly Baker Demand, Flash September Market Production and Services Purchasing Managers Index at 30.30: 300 and East and Leading Economic Indicators at 455 in the morning.

The White House will hold a virtual meeting on Thursday to discuss the global chip shortage, with the CEO of Intel Corporation.
Apple Inc. executives join AAPL,
Microsoft Corporation MSFT,
Ford Motor Company f
And others, Reuters reported on Wednesday.

Investors are keeping a close eye on China Evergrand HK: 3333,
The property giant whose problem started the global equity meldown earlier this week. Shares in Hong Kong rose 17% as the market reopened after the holiday.

Investors are waiting to hear if Evergrand will pay due 2.5 million in coupons on its US dollar bonds on Thursday. Markets on Wednesday welcomed the news that its property business would pay interest on an unsecured bond.

According to Bloomberg Law, Beijing regulators issued an order to Evergrand on Thursday urging investors to focus on returning, completing unfinished assets and avoiding term defaulters near dollar bonds.

Property investment firm Chinese Estates said on Thursday that it would sell its entire stake in China Evergrande amid concerns about market volatility and the financial stability of the heavily indebted group.

How are other markets transacting?
  • Yield at 10 year Treasury Note BX: TMUBMUSD10Y
    Was unchanged at 1.332%. Yields and prices move in the opposite direction.

  • ICE US Dollar Index DXY,
    The currency measure was 0.3% lower at 93.16 against a dragon of rivals.

  • Oil futures were lower with the US benchmark CL00
    0.5% lower to $ 71.90 per barrel. Gold Futures GC00
    0.3% lower to about 7 1,773 an ounce.

  • In Asia, Hong Kong’s Hang Seng Index HK: HSI
    China’s CSI 300 index XX: 000300 reopens after 1.1% gain
    0.6% and Japan’s Nikkei 225 index UK: UKX
    Was closed for the holidays.

  • In Europe, Stoxx Europe 600 Index XX: SXXP
    0.9%, while the FTSE 100 Index UK: UKX
    Gained 0.2%.

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