U.S. Stock Futures Are Lower with Lingering Concerns About Evergrande #ChairmanPowell #Bitcoin #Evergrande
U.S. stock futures are lower: Expecting a lower opening with lingering concerns about Evergrande and higher rates are depressing asset prices. Evergrande made the local bond payments and dollar bondholders are still waiting for their payment - there is a grace period that the company can utilize. However, the contagion from a potential bankruptcy is expected to be contained within the Chinese markets. Yields are noticeably higher on the 10y & 30y as the flight to safety trade is slowly reversing and Fed’s tapering is anticipated to start within the next few months. Fed Chairman Powell is set to speak at 10 am with other central bank officials. Bitcoin prices declined as China announced that offering, trading, order matching, token issuance, and derivatives for virtual currencies are strictly prohibited. Bitcoin prices are down by roughly 7%. Credit spreads on both the high yield and investment grade bonds remain tight as the new corporate supply has been smoothly absorbed by investors. All international markets have closed and trading lower. Global central banks may be collectively taking a hawkish tone as moderate growth is tenable, demand is stable and inflation is higher.