July 15, 2022
United States:
S&P Futures Rally as Options Expire; Dollar Falls: Markets Wrap
Stock futures rose, following five straight days of losses for equities, in a week in which markets have been whipsawed by shifting expectations for monetary tightening by the Federal Reserve and worries over global economic growth.
S&P 500 contracts rebounded in what’s likely to be another roller-coaster session, with about $1.9 trillion of options set to expire. Citigroup Inc. climbed in premarket trading on a better-than-estimated profit, while Wells Fargo & Co. fell after disappointing earnings.
Europe:
Italian Stocks Are at Risk of Bond Spread Widening: Chart
Political turmoil in Italy is pressuring benchmark BTP bonds and increasing the yield spread with German Bunds, and weighing on the country’s stock market. The FTSE MIB Index’s relative performance trailed the tightening in bond spreads back in 2020 and 2021, but recently this gap has narrowed, providing less of a cushion. Italian bond spreads tend to impact equities, particularly financial companies, which own a large chunk of the nation’s bonds and have a 29% weight in the benchmark, making them sensitive to political turmoil.
Asia:
China Mortgage Boycott Data Erased by Censors as Crisis Spreads
China is censoring crowd-sourced documents tallying the number of mortgage boycotts spreading across the country, potentially hampering a key source of data for global investors and researchers tracking the property crisis.
Shared files managed on platforms including China’s Quora-equivalent Zhihu Inc. and on sites like Kdocs and Wolai have been banned following reports that the number of homebuyers refusing to pay mortgages surged in a span of days. GitHub, a popular file-sharing site for coders, remains as a source for people to post documents.
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