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Chinese stocks had a mixed reaction Monday to a press conference over the weekend where officials promised further action but didn’t deliver a clear number on how much the country would spend in doing so.
The Shanghai Composite closed 2.1% higher, while the Hang Seng closed 0.8% lower. Both indexes have surged since China last month announced rate cuts and a flurry of other measures to boost the economy.
Chinese Finance Minister Lan Fo’an did say the country would increase the debt limit with the idea of helping out local governments. He also said the country would issue special bonds to support bank capitalization, as well as use a combination of bonds and tax policies to stabilize the bond market.
Gaming stocks including Entain, Flutter Entertainment and Rank Group tumbled on a report suggesting the sector could see a tax hike.
The Guardian newspaper first reported the possible move, ahead of the government’s budget in which it aims to reduce what it calls a £22 billion black hole.
How are stock-index futures trading:
S&P 500 futures increased 0.75 points, or 0.02%, to 5860
Dow Jones Industrial Average futures fell 4 points, or 0.01%, to 43,140
Nasdaq 100 futures increased 3.25 points, or 0.02%, to 20,451.50
On Friday, the Dow Jones Industrial Average rose 410 points, or 0.97%, to 42864, the S&P 500 increased 35 points, or 0.61%, to 5815, and the Nasdaq Composite gained 61 points, or 0.33%, to 18343.
The S&P 500 closed Friday at a record high, its 45th of the year.
Stock futures were pretty much flat on Monday as investors braced themselves for the first full week of third-quarter earnings while working to understand the most recent announcement around stimulus measures from the People’s Republic of China.
Major U.S. firms including Johnson & Johnson, Bank of America, Morgan Stanley, Citigroup, Netflix, Goldman Sachs and American Express are all set to publish third quarter results this week in statements that could spark volatility in markets.
Elsewhere, ASML and Taiwan Semiconductor Manufacturing Co are also both scheduled to release their third-quarter results on Wednesday and Thursday respectively in publications that will provide investors insight into the health of the global tech industry.
A new stimulus announcement from China on Saturday left investors wanting more. A highly-anticipated press conference instead gave few details as to the Chinese Communist Party’s plans to revive China’s stagnant economy even while signaling strong intentions.
Bond markets on Monday will stay closed for Columbus Day federal holiday.
Federal Reserve Governor Christopher Waller is also scheduled to speak at a conference in California.
