The Jerusalem Post

Futures mixed as US-listed Chinese firms drop


US stock index futures were mixed on Tuesday, as investors returned from a long holiday weekend to focus on Beijing’s crackdown on several US-listed Chinese firms, while energy stocks rose as oil prices touched multi-year highs.

Didi Global Inc. shares slumped as much as 25% in premarket trading after Chinese regulators ordered over the weekend the company’s app be taken down days after its $4.4 billion listing on the New York Stock Exchange.

Other US-listed Chinese e-commerce firms, including Alibaba

Group, Baidu and, fell between 1% to 2.7%, with the Chinese crackdown also weighing on the global markets.

Investors, meanwhile, waited for clues from the US Federal Reserve’s policy minutes on when quantitati­ve easing might be tapered. It will be released on Wednesday.

Wall Street is sensitive to any hints of a hawkish shift in the Fed’s tone, as market participan­ts have moved between “value” and “growth” stocks in the past few sessions on fears that a potentiall­y stronger-than-expected economic recovery could force the central bank to cut back its support.

The benchmark S&P 500 index notched record closing highs seven straight days on Friday, its longest streak of consecutiv­e record closes since June 1997, helped by tech-heavyweigh­ts Microsoft, Apple, and Alphabet.

Oil prices hit multi-year highs after talks between OPEC+ producers collapsed, with major energy companies including Occidental Petroleum Co., Chevron and APA Corp. rising between 0.8% and 2.3%.

Attention will also be on ISM non-manufactur­ing PMI data for June, which is expected to ease after hitting a record high of 64 in May. The report is due at 10 a.m. ET.

Dow e-minis were down 27 points, or 0.08%, S&P 500 e-minis were down 3.25 points, or 0.07%, and Nasdaq 100 e-minis were up 4.75 points, or 0.03%.

Second-quarter earnings season is set to begin next week with big banks, while investors also watched for progress on US President Joe Biden’s infrastruc­ture bill.

Among other stocks, American Express added 2.5% after Goldman Sachs raised its rating on the stock to “buy” from “neutral.”

US-listed shares of China’s top two video game streaming sites, Huya and DouYu, fell 2.6% and 7.3%, respective­ly, after China’s antitrust regulator said it will block Tencent Holdings Ltd.’s plan to merge the firms.

Mobile gaming firm Bilibili Inc fell 3.9%. (Reuters)

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