U.S stock futures rise as China s Evergrande reaches bond payment agreement

U.S stock futures rise as China s Evergrande reaches bond payment agreement

U.S stock futures rallied Wednesday morning as China s Evergrande reached a bond payment agreement and investors looked forward to the Federal Reserve's latest policy decision.

Dow Jones Industrial Average Futures rose 196 points, or 0.8%, while S&P 500 futures and Nasdaq 100 futures rose 0.52% and 0.3% respectively.

Embattled Chinese real estate developer Evergrande negotiated a deal with the bank to settle interest payments and settle contagion concerns. On Wednesday, the People s Bank of China injected 90 billion Chinese yuan into the banking system in a show of reassurance.

Meanwhile, the Federal Reserve will announce its latest policy decision with investors looking for clues about when the central bank might begin tapering its asset purchases.

Jerome Powell stated last month at the Jackson Hole symposium that any tapering announcement is not a direct signal with respect to the timing of interest rate liftingoff. In stocks, FedEx Corp. reported a 7% drop in the quarterly profit and reduced its full year earnings forecast due to its inability to find workers before the crucial holiday season.

General Mills Inc. guided organic net sales on both top and bottom lines, and beat organic sales at the high end of its previous range.

Adobe Inc. released record quarterly earnings and announced better earnings guidance for the current quarter.

Stitch Fix Inc. had a surprise profit as the company's new direct purchase option provided an alternative to its monthly subscription service, offered a boost.

Elsewhere, the shares of Marin Software Inc. soared after the company entered into a revenue share agreement with Google for the development of its enterprise technology platform and software products.

In commodities, West Texas Intermediate crude oil surged $1.15 to $71.64 a barrel and gold increased $3.50 to $1774.60 an ounce.

European exchanges raised across the board, with Germany's FTSE 100 rising 1.15%, France's CAC 40 gained 1.1% and Britain's DAX 30 strengthening 0.65%.

The Shanghai Composite Index jumped 0.4% in Asia while the Japan s Nikkei 225 index fell 0.67%. Hong Kong's Hang Seng index was closed for holiday.