Here are five things you need to know for Thursday, September 30:
1. – Stock Futures Gain As Markets Close September’s Brutal Trading
U.S. equity futures rose further on Thursday, but are still on track for their worst monthly performance of the year, as investors continue to face a series of risks from the energy markets, Chinese growth and US fiscal policy.
Senate Democrats may have neutralized at least one of those concerns Thursday with a bill they say can avoid a government shutdown on Friday while finding cross-party support. Majority Leader Chuck Schumer will hold a vote this morning, paving the way for President Joe Biden’s office before the midnight deadline.
In China, however, a surprise slowdown in Chinese manufacturing activity this month, linked to power outages in the industrial northeast, underscored the myriad of challenges facing the world’s second-largest economy as the markets approach. last months of the year.
On Wall Street, futures contracts linked to the Dow Jones Industrial Average show solid gains for the last trading day of the month, with the benchmark poised for an opening bell gain of 195 points. Futures related to the S&P 500, which is down 3.6% for the month but retains a 1.44% gain in the third quarter, are valued for a 24 point lead,
Futures on the Nasdaq Composite envision a more modest opening bell gain of 80 points as benchmark 10-year yields hover around the 1.522% level at the start of trading in New York.
2. – Senate leaders avoid closure, but debt ceiling looms
U.S. lawmakers appear poised to pass legislation on Thursday that will fund the government until December, avoiding a damaging shutdown but leaving many key challenges, including the looming debt ceiling unanswered.
Senate Majority Leader Chuck Schumer will call a floor vote on Thursday on a bill that will fund basic government operations until early December and is expected to find bipartisan support in both houses of Congress.
The fate of the impending debt ceiling, which could prevent any further government borrowing beyond October 1, and the passage of both a $ 1 trillion infrastructure bill and a The broader $ 3.5 trillion budget plan remains unknown as House Democrats continue to bicker over the size, scope and timing of the two pieces of legislation that form the central plank of President Joe Biden’s economic agenda.
“We are obviously at a precarious and important time,” White House press secretary Jen Psaki said Wednesday evening.
3. – Evergrande misses the second payment of an offshore bond
China Evergrande, the indebted real estate developer, missed another bond payment on Thursday, raising concerns among international investors that it could prioritize domestic creditors as it scrambles to avoid collapse.
With over $ 300 billion in debt, with nearly a billion bond payments due before year-end, and a liquidity squeeze from untapped properties and rising construction costs, Evergrande would not have made a payment of $ 47.5 million on a dollar bond. after a similar failure of an $ 87.5 million coupon last week.
The concern was compounded by the group’s plans to see a $ 1.5 billion stake in Shengjing Bank Co., a state-backed asset management group, and use the proceeds to pay off the domestic creditors, leaving foreign investors with less real assets to recover in the event of default.
4. – Record quarter for global mergers and acquisitions; IPOs slow amid China’s ‘hiatus’
Spac deals, game buybacks and fintech expansions in ‘buy now, pay later’ payment companies sparked a record third quarter M&A surge that brought total deal value to over 1.5 trillion dollars.
Data from Refinitiv suggests that global mergers and acquisitions are on track to have their best year since the global financial crisis, in fact, as a combination of record interest rates, peak value stocks and the willingness to transforming business structures in post-pandemic economies accelerated the deal. manufacture in markets around the world.
IPOs, however, slowed slightly in the three months ending in September, with just under $ 100 billion raised amid a pause in China-based listings on US exchanges requested by the president. of the Securities & Exchange Commission, Gary Gensler.
Yet global IPOs raised more than $ 421 billion in the nine months ending September, through more than 2,000 listings, and are on course for the best year since the dot-com era of 2000.
5. – The judge suspends the father of the free guardianship of Britney Spears
A California judge suspended Britney Spears’ father from overseeing his financial affairs on Wednesday night, putting in place the likely end of his infamous thirteen-year tutelage.
Los Angeles Superior Court judge Brenda ruled Jamie Spears’ role in guardianship, which was established in 2008 following the singer’s reported nervous breakdown, was “toxic” and “untenable.” . She has set a Nov. 12 hearing on the fate of the arrangement, which has controlled both the personal life and the $ 60 million estate of the iconic artist.