U.S. Stock Futures Are Higher After Liquidity Fallout Tensions Related to Evergrande #FedPolicy #Evergrande #OilPrices
U.S. stock futures are higher: Liquidity fallout tensions related to Evergrande have eased slightly resulting in a potential higher opening for U.S equities. Evergrande’s onshore entity announced it would make timely interest payment but might miss the payments to international bond investors. Additionally, investors are waiting for Fed’s policy statement announcement at 2pm & they are seeking insight into the potential timing and size of the tapering. The primary consensus is for a gradual or measured initial reduction in monthly purchases and any future reductions will be directly determined by the pace of employment growth and inflation. Treasury yields are basically flat this morning in anticipation of this afternoon’s announcement. Oil prices are higher as U.S crude stock declined more than expected and supply remains tight and demand is slowly improving; also, global gas prices are anticipated to remain in a higher trading range since winter is coming. The House passed a bill to prevent a federal government shutdown and suspended the debt limit and this measure is going to the Senate, with Republicans threatening to block it. Congress has to finalize a funding plan by September 30 to avert a shutdown. European markets are trading higher and Asian markets closed mixed with uncertainty associated with Evergrande still lingering.