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Stock market today: Chinese markets surge on intervention rumors, while US futures tread water

Feb 6, 2024, 18:28 IST
Business Insider
Chinese President Xi Jinping.Lintao Zhang/Getty Images
  • Chinese stocks surged Tuesday, with market regulators expected to meet with Xi Jinping.
  • Meanwhile, US futures traded mixed ahead of the opening bell.
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China's beaten-down stocks were the big movers on global markets Tuesday as benchmark indexes rebounded on speculation that Beijing could step up its efforts to address a recent market rout.

The CSI 300 gauge of mainland equities was up more than 3% by the closing bell, while Hong Kong's Hang Seng surged 4% in its final hour of trading after Bloomberg reported that regulators are set to meet with president Xi Jinping.

Meanwhile, US futures traded mixed after falling Monday as investors grappled with a blowout January jobs report and Federal Reserve chair Jerome Powell signaling that the central bank only plans to cut interest rates three times this year.

The S&P 500 and Dow Jones Industrial Average futures were down 0.1% at 6 a.m. ET, while Nasdaq futures rose by the same amount. Yields on 10-year Treasury notes dropped 2 basis points.

Investors await fourth-quarter earnings reports from pharma giant Eli Lilly, carmaker Ford, and social-media company Snap, which started laying off workers Friday in the latest tech industry cull.

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Regional Fed presidents including Cleveland's Loretta Mester and Philadelphia's Patrick Harker are also set to give speeches Tuesday, which could give investors more of a clue about the approach policymakers are taking on interest rates.

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