December S&P 500 futures (ESZ23) are down -0.34%, and December Nasdaq 100 E-Mini futures (NQZ23) are down -0.51% this morning as investors weighed concerns over China’s debt burden and looked ahead to the latest reading on U.S. job openings as well as U.S. business activity data.
Moody’s Investors Service on Tuesday cut its outlook for Chinese sovereign bonds from stable to negative, highlighting growing global concerns regarding the level of debt in the world’s second-largest economy. “The downgrade reflects growing evidence that authorities will have to provide financial support for debt-laden local governments and state firms, posing broad risks to China’s fiscal, economic, and institutional strength,” Moody’s said in a statement.
