U.S. Stock Futures Are Lower with China's Slowing Growth Rate #China #Cryptocurrency #Evergrande

United Asset Strategies |

U.S. stock futures are lower. China’s slowing growth rate from 7.9% to 4.9% for the 3Q (y/y) is driving futures lower this morning. The magnitude of decline surprised markets and a combination of factors, such as paring back existing stimulus programs, higher energy prices, and supply chain issues were principally responsible for this reduction. Concerns about growth rates recalibrating lower amid higher energy prices and potentially sticker inflation, as opposed to “transitory”, continue to worry investors. Treasury bond yields remain higher this morning. Brent crude futures rose 1% to $85.72. On the cryptocurrency front, bitcoin traded at $61,409 on Sunday as the first bitcoin ETF is expected to start trading Tuesday. Corporate earnings so far are coming in higher than expected and companies will continue to report financial results this week. China’s central bank released an official statement on Evergrande, which stated that the liquidity issues are “controllable”. European markets are trading lower and Asian markets closed mixed.