US futures stable as stocks in China decline: markets wrap

(Bloomberg) — US futures held steady as profits fell as stocks fell, while investors dumped Chinese stocks amid a regulatory review in the country. Treasuries rose.

Contracts on the S&P 500 offset previous losses, while those on the Nasdaq 100 Index turned positive as earnings reports came in. Tesla Inc. and General Electric Co. rose in premarket trading after results that beat forecasts. European equities also fell.

In Asia, the Hang Seng index fell 4.2% on speculation that US funds would offload assets from China and Hong Kong.

The slump in China is adding to the market turmoil as investors are already nervous about the economic recovery, given the emergence of the delta variant and central bank talks over a tightening policy. While a strong start to the earnings season has helped equities, further catalysts may come from this week’s Federal Reserve meeting and updates expected today from major tech companies like Apple Inc. and Alphabet Inc.

In China, the yuan fell to its lowest since April against the dollar and bonds fell, signaling mounting concerns that Beijing’s crackdown on education, food delivery and real estate could spread to other industries. The Hang Seng Tech Index, a benchmark for many Hong Kong-listed Chinese stocks, plunged as much as 10%.

“Chinese technology stocks fell under significant support this week,” said Valerie Gastaldy, a technical analyst at DayByDay. “This is very much like panic. The closing price at the end of the month will be important. Either long-term investors walk in at those prices and save the summer, or they confirm that Chinese stocks are no longer on their cards.’

Elsewhere in the markets, Treasuries rose in line with the yen on demand for safe-haven assets. Intel Corp. fell after its plans to ramp up innovation failed to impress analysts.

Bitcoin traded near $37,000 after rising above $40,000 overnight.

Here are some key events to watch this week:

Alphabet, Apple, Facebook, Amazon Report Gains This WeekFederal Reserve Policy Meeting Ends Wednesday GDP data expected Thursday donderdag

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S&P 500 futures fell 0.1% as of 7:30 a.m. New York timeNasdaq 100 futures had changed little Dow Jones Industrial Average futures fell 0.2%The Stoxx Europe 600 fell 0.3%The MSCI Asia Pacific Index fell 1.1%

currencies

The Bloomberg Dollar Spot Index rose 0.1%The euro fell 0.1% to $1.1789The British pound fell 0.2% to $1.3785The Japanese yen rose 0.2% to 110.15 per dollarThe offshore yuan fell 0 .5% to 6,5137 per dollar

bonds

10-year government bond yields fell three basis points to 1.26% German 10-year yields fell one basis point to -0.43% British 10-year yields fell one basis point to 0.56%

Raw materials

West Texas Intermediate crude rose 0.3% to $72.14 a barrelGold futures fell 0.2% to $1,800.40 an ounce

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