U.S. Stock Futures Are Higher After Equity Indexes Surged Yesterday #Omicron #Evergrande #MarketUpdate

U.S. stock futures are higher. After equity indexes surged yesterday, futures are slightly higher in morning trading. So far the omicron variant is not as severe as initially predicted and fueling markets prices. Markets are expected to remain volatile as additional information is released. Treasury long term bond yields are slightly higher and the 10y treasury auction is scheduled for this afternoon. Evergrande has not made the interest and principal payments on its U.S dollar bonds on Monday and is setting the stage for an ultimate default. By reducing the reserve requirements for its Banks, the Chinese officials have essentially placed additionally liquidity into the funding markets in preparation of a weightily default. The possible contagion from this default is expected to be isolated to the Chinese’s real estate segment; however, the subsequent shock to the Chinese economy remains uncertain. The House passed a bill that would allow the Senate to increase the borrowing limits with a majority vote. European markets are lower and Asian markets are higher.