3 weeks U.S. stock-index futures slide early Friday Reddit      

U.S. stock-index futures were pointing to losses on Friday, on the heels of two strong sessions, as bond yields continued to rise in the wake of the Federal Reserve’s policy statement on Wednesday.

What’s driving the market?

Equity benchmarks have enjoyed two strong days of gains following the Federal Reserve’s policy meeting on Wednesday, as investors welcomed a delay to the start of the tapering of the central bank’s bond purchases and ignored the projected rise in interest rates in 2022. “Something has clearly changed and positioning on rates is shifting. U.S. 10yr yields jumped to 1.44%, posting their biggest one-day gain since March, whilst 30 year bond yields jumped the most in a single day since March 2020,” said Neil Wilson, chief market analyst for Markets.com. Thursday also saw several global central banks meet, with interest rate hikes out of Norway and Turkey. “Although the Fed and [Bank of England] remain fairly cautious and the dogma of transitory inflation persists, they’re starting to move beyond pandemic-era emergency mode. Investors see this and are moving too — rates steepening again as they did earlier this year,” said Wilson.

Major US. stock indexes were holding on to slim weekly gains, in a week that began with sharp losses linked to fears over global contagion from troubles surrounding property group China Evergrande. As of Thursday, bondholders still hadn’t received any money from China Evergrande 3333, -11.61%, which was due to make a $83.5 million interest payment on dollar bonds, The Wall Street Journal reported, citing sources.

The company has a 30-day grace period to make a payment, but barring that, Evergrande could trigger a default. Those shares fell 12% in Hong Kong on Friday. Elsewhere, media reports said Friday that the company’s electric-vehicle unit hadn’t paid suppliers in months, with employees also receiving no salary for September.


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