Markets set for a positive session
U.S. stock futures were trading higher ahead of Monday’s opening bell, as market participants tried to shrug off China Evergrande Group’s debt crisis and bet on further economic recovery from the Covid-19 pandemic.
Evergrande will remain in focus this week after its electric car unit withdrew plans for a share listing and warned of a “serious shortage of funds.”
Many Chinese households face risks after Evergrande defaulted payments on investment funds sold via shadow banks, which have channeled billions of dollars into its construction projects.
As of 5:30 a.m. ET, futures for the blue-chip Dow were indicated 158 points, or 0.46% higher to 34,832. S&P 500 futures jumped 12.75 points, or 0.29% to 4,458.50 while the tech-heavy Nasdaq 100 futures were little changed.
House to vote on $1.5trn infrastructure bill on Thursday
Meanwhile, U.S. Speaker of the House of Representatives Nancy Pelosi has pledged that her Democratic party will vote on a bipartisan $1.5 trillion infrastructure legislation this week and push ahead on the larger $3.5 trillion climate change and social safety net bill while admitting the total amount will drop.
Pelosi had initially planned to hold a vote on the infrastructure bill by Monday, but she announced Sunday in a letter to Democratic lawmakers that the vote will now take place on Thursday.
“Tomorrow, September 27, we will begin debate on the Bipartisan Infrastructure Framework on the Floor of the House and vote on it on Thursday, September 30, the day on which the surface transportation authorization expires,” the Speaker said in the letter.
The bill, which passed the Senate with the support of Democrats and Republicans on Aug. 10, would provide funds for bridge, road, school, airport, and other construction projects.
Crude futures jump higher amid global energy crunch
In energy markets, crude futures were trading in the green territory early Monday amid a combination of spillover effects from rising natural gas prices and supply disruptions.
Crude has surged recently after a period of coronavirus-induced demand uncertainty, with some analysts predicting the commodity may rise further amid the energy crisis.
Analysts also expect the increase in natural gas prices to force some consumers to switch to oil, a move that could tighten the market further ahead of the northern hemisphere winter.
At around 5:40 a.m. ET, U.S. West Texas Intermediate (WTI) crude futures were marked 94 cents, or 1.27% higher to $74.92 a barrel. Global Brent crude futures added $1.04, or 1.35% to $78.27 a barrel.
