U.S. and European equity futures advanced, while bond yields ticked lower. The moves came after China's banking regulator announced it would set up a task force to examine risks at Zhongzhi Enterprise Group Co. The company, one of the nation's largest largest private wealth managers, had missed payments on investment products sold to high-net worth clients and corporations.
Once China's largest private-sector developer by sales, the company is at risk of joining a slew of defaulters if it fails to make coupon payments on two dollar bonds within a 30-day grace period. Shares in mainland China declined while almost all of the 80 members of Hong Kong's Hang Seng Index slipped Monday. The CSI 300 Index, which is the benchmark of onshore Chinese shares, is now close to erasing all of the gains it made after the Politburo meeting last month amid signs of deterioration in the economy.
Focus later this week will be on minutes of Fed's latest policy meeting as traders seek clues on the central bank's next move.