Futures rise as Evergrande concerns ease, Fed now in focus By Reuters
By Ambar Warrick
(Reuters) – U.S. stock index futures rose on Wednesday as concerns over China’s Evergrande eased after the property developer negotiated a domestic bond payment deal, with investors now awaiting policy cues from the Federal Reserve later in the day.
Evergrande’s main division said that they had reached an agreement with bondholders for the settlement of interest payments on a domestic bonds. The deal helped to calm concerns about global financial turmoil.
The has fallen for 10 of the past 12 sessions since hitting a record high, as fears of an Evergrande default exacerbated seasonally weak trends and saw investors pull out of stocks trading at lofty valuations.
The Fed’s decision at 2:05 p.m. ET is now the focus. ET (1700 GMT), where the Fed could announce plans to reduce its large-scale coronavirus-related stimulative measures.
The central bank could announce a taper decision in September, as there has been a flurry of positive economic data.
Major banks were supported by a small rise in Treasury yields and commodity-linked oil and metal stock gains. In recent sessions, however, losses were widespread in most industries.
U.S. S&P 500 E-minis were up 25.5 points, or 0.59%, at 06:26 a.m. ET. Dow E-minis rose 222 points or 0.6% with the sale of 50,454 contracts. The E-minis were up by 57.75, or 0.38%.
Recent sessions saw the Nasdaq fall the least of its peers, with investors returning to technology companies that were resilient in the face of the pandemic.
Fedex Corp, which posted a lower quarterly profit than expected and lowered its full year earnings outlook fell 5.8% among individual stocks.
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