E-Minis Nudging Lower Ahead Of Return Of Chinese Markets

There is clearly some caution evident ahead of the re-opening of onshore Chinese markets after their elongated weekend, with e-minis trading ~0.5% below settlement levels at typing.

• The fallout from the China Evergrande situation will be at the fore.
• A reminder that Tuesday saw a BBG source report note that Evergrande missed interest payments due to at least two of its major creditors on Monday (no surprise). Focus now moves to the firm's next round of bond coupon payments, which are due to be paid on Thursday. Broader expectations seem to look for the company to miss at least some of the coupon payment, although the sell-side has leant towards the idea that fallout from a default and any subsequent restructuring will be relatively contained and closely managed by the Chinese authorities.