China Stock-Index Futures Drop as IPO Fund Demand Drains Cash

China’s stock-index futures fell amid concern a flood of share sales may lure funds away from existing equities.

Futures on the CSI 300 Index expiring in June, the most active contract, slid 1.3 percent to 5,162.20 as of 9:20 a.m. local time.

The Shanghai Composite Index dropped 2 percent to 5,062.99 on Monday. The CSI 300 Index declined 2.1 percent. Subscriptions for 25 A-share initial public offerings including Guotai Junan Securities Co. may tie up 6.68 trillion yuan ($ 1.08 trillion) of liquidity starting Wednesday, according to the median estimate of six analysts surveyed by Bloomberg. Funds to be locked up may be the highest since January 2014 when China resumed IPO approvals, according to China International Capital Corp. and Guotai Junan.

Source : Bloomberg

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U.S. Stocks Fluctuate as Oil Gains; Gold Rises on Haven Demand

U.S. stocks fluctuated as gains in crude oil boosted energy shares, offsetting concern that Greece’s rejection of the nation’s bailout terms could lead to fresh turmoil. The yen and gold advanced amid demand for haven assets.

The Standard & Poor’s 500 Index fell 0.1 percent at 11:58 a.m. in New York, after rising 3 percent last week. The Stoxx Europe 600 Index slid 0.7 percent. Greece’s three-year note yield rose to the highest since the nation’s debt was restructured in 2012. The rate on 10-year Treasuries lost two basis points to 1.94 percent. Gold rose 0.5 percent, while U.S. crude added 2.7 percent to $ 53.04 a barrel. Russia’s ruble rallied as talks on a cease-fire in Ukraine continued.

Greek Prime Minister Alexis Tsipras vowed to negotiate an end to austerity before talks with creditors, while Russia’s foreign minister warned the U.S. and its allies against sending weapons to Ukraine. The biggest import slump in more than five years pushed China’s January trade surplus to a record, highlighting the impact of commodity prices on the world’s second-biggest economy.

Source : Bloomberg

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