S&P Futures Slide After Chinese Stock And Bond Rout; Spain Rebounds, Dollar Drops

U. S. futures slid 0.2% as investors await a barrage of announcements including Wednesday’s Fed decision, Friday’s jobs report and, most importantly Trump’s imminent announcement of who the next Fed chairman will be, although after the latest trial balloons, Jay Powell is now largely priced in. Asian equities edged modestly higher despite a tumble in Chinese stocks and bonds with Japan’s Nikkei closing 3 points in the green, while European shares hold steady after concerns eased about the Catalan crisis with no notable developments over the weekend, pushing Spanish stocks and bonds higher.
As reported last night, the big overnight event was the tumble in Chinese stocks, which fell the most since early August, dropping as much as 1.7% before closing below 3,400, down 0.8%, and breaking the calm that persisted through the recent Party Congress, as government bonds extended a monthly rout amid concern the government will step up efforts to reduce leverage in the financial sector. Small-cap shares bore the brunt of the selling, with the ChiNext gauge tumbling as much as 2.5%.

This post was published at Zero Hedge on Oct 30, 2017.