Monday, October 25, 2021

Global stocks retreat after Evergrande shares are suspended

Global stocks fell as Hong Kong benchmarks fell more than 2 per cent after shares of troubled property developer China Evergrande were suspended from trading.

Shares opened lower in Paris, Frankfurt and Tokyo. US futures also fall

China Evergrande did not say why it suspended its shares, but Calian, a Chinese financial news service, said another major developer was planning to buy Evergrande’s asset management unit.

Evergrande is struggling to pay off more than $300 billion in debt as it ends a cash crunch caused by the tightening of Chinese government restrictions on debt-leveraged financing.

Germany’s DAX fell 0.2 per cent to 15,131.70 while the CAC 40 in Paris was down 0.3 per cent at 6,498.98. Britain’s FTSE 100 was flat at 7,027.72.

The future of the Dow Industrials slipped 0.3 percent, while that for the S&P 500 was also down 0.3 percent.

In Asian trade, the Hang Seng fell 2.2 per cent to 24,036.37 while Tokyo’s Nikkei 225 fell 1.1 per cent to 28,444.89. Taiwan shares fell 1 percent.

A woman walks past the electronic board of a bank showing the Hong Kong stock index at the Hong Kong Stock Exchange in Hong Kong on October 4, 2021. (Vincent Yu/AP Photo)

Australia’s S&P/ASX 200 rose 1.3 percent to 7,278.50. On Friday, its government outlined plans to lift a pandemic ban on its vaccinated citizens traveling abroad from November, although it has yet to reopen to international travelers.

Markets were closed in Shanghai and South Korea for the holidays.

Crude oil prices fell slightly ahead of the meeting of major oil producers. There was no indication that a leak from a pipeline off the California coast was affecting oil prices.

An estimated 126,000 gallons (572,807 litres) of heavy crude is believed to have leaked from an underwater pipeline offshore from Orange County. The leak was reported to have stopped by late Sunday evening.

The environmental impact was likely to be much worse than any impact on the overall oil supply. The leaked amount was about 3,000 barrels, while the US produces more than 18 million barrels of crude a day.

US benchmark crude oil rose 9 cents to $75.97 a barrel in electronic trading on the New York Mercantile Exchange. It rose 85 cents to $75.88 a barrel on Friday.

Read Also:  Biden: 'democracy survived' Capitol riot over police

Brent crude, the international standard for pricing, rose 19 cents to $79.47 a barrel.

Oil prices are hovering near 3-year highs after Hurricane Ida slammed into a vital port that serves as the primary support center for the Gulf of Mexico deepwater offshore oil and gas industry in the US, at least temporarily worsens the supply situation.

The OPEC logo is painted before an informal meeting between the members of the Organization of the Petroleum Exporting Countries (OPEC) in Algiers, Algeria on September 28, 2016. (Ramji Boudina/Reuters)

OPEC and other major oil producers were stunned by deep production cuts in 2020 during the depths of the pandemic and are gradually ramping up production.

Mizuho Bank said in a commentary that OPEC Plus members, due to meet on Monday, may consider raising production levels to meet rising demand.

Wall Street returned on Friday led by the companies that would benefit most from a healthy economy. The S&P 500 closed up 1.1 per cent at 4,357.04. But US markets still had their worst week since winter.

The Dow Jones Industrial Average rose 1.4 per cent to 34,326.46. The Nasdaq Composite rose 0.8 percent to 14,566.70.

The yield on the 10-year Treasury remained stable at 1.48 per cent on Monday.

September was the worst month for the S&P 500 since March 2020, when markets fell as the COVID-19 shutdown took hold.

Amid weighted concerns on the market: The Federal Reserve is close to shutting down the accelerator on its support for markets, mixed economic data after recent spurt in COVID-19 infections, could increase corporate tax rates And the political turmoil over the US debt limit and funding for President Joe Biden’s infrastructure initiative continues in Washington.

In currency trading, the dollar rose from 110.96 yen to 111.17 Japanese yen late Friday. The euro rose from $1.1600 to $1.1614.

by Elaine Kurtenbach

The Associated Press



This News Originally From – The Epoch Times

Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news
- Advertisement -