S&P 500 Futures extend losses on China woes, US stimulus anxiety

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  • S&P 500 Futures refresh intraday low, stays pressured towards late July lows.
  • Another China property developer misses debt payments, US President Biden struggles to convince Republicans.
  • US PMIs eyed ahead of the key NFP, risk catalysts are important for a clearer view.

S&P 500 Futures take offers around 4,278, down 0.35% intraday during early Tuesday. The risk barometer drops for the second consecutive day amid sour sentiment surrounding the US stimulus and China.

While fears of Evergrande default loom, Bloomberg came out with the news suggesting another blow to the Chinese financial markets.

“Fantasia Holdings Group Co. didn’t repay a $205.7 million bond that was due Monday, according to a company statement. Separately, property management company Country Garden Services Holdings Co. said that a unit of Fantasia didn’t repay a 700 million yuan ($108 million) loan that also came due on Monday and that a default was probable,” said the news.

Elsewhere, US President Joe Biden’s readiness to trim the Democratic demand on infrastructure spending initially favored market sentiment in Asia. However, concerns that the Republicans will reject the move weighed on the risk appetite of late. It should be noted that Biden previously cited fears of crossing the October 18 deadline without any deals while blaming the Republicans.

On a different page, Japan’s fresh PM Fumio Kishida gains a warm welcome from the global leaders, signaling progressive tie-ups as the global giants overcome the pandemic with faster jabbing. The same should have favored the market sentiment but couldn’t ignore Fed tapering concerns that underpin the US Treasury yields.

Moving on, the US ISM Manufacturing PMI and final reading of Markit PMI for September will be important to watch for fresh impulse while the headlines concerning China and Evergrande should be added to the catalyst list.

Read: US September ISM Services PMI Preview: Eyes on inflation and employment details