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In the news:
Evergrande's announcement put pressure on stock markets. The Hang Seng Index closed the Chinese trading day 2.05 percent lower. That puts the index down 20 percent from its January high, meaning theHong Kong stock market is in a bear market.China's other indices also shared in the blows. The Shanghai Stock Exchange Composite Index lost 1 percent and Shanghai Shenzhen CSI 300 dropped 1.25 percent. Those two indexes are far from a bear market, though.-
Concerns about
China's real estate market are being felt as far away as us. At around2:30 p.m. , the Eurostoxx50 was down 1 percent and the Bel20 had to give up 1.3 percent. Stock markets in theU.S. are also heading for a red opening. Pre-exchange theDow Jones dropped 0.5 percent and the Nasdaq 0.8 percent.-
In the West, investors are also worried about rising interest rates. There is growing awareness that central banks, including the Fed and
ECB , need to fight high inflation for a while longer.
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In the West, investors are also worried about rising interest rates. There is growing awareness that central banks, including the Fed and
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Earlier this week, it also came to light that
Country Garden two interest payments in August. "That combined with the problems atEvergrande is causing investors to start worrying about a domino effect and bankruptcy,"Russ Mould , investment director at investment platformAJ Bell , noted toU.S. news site . JPMorgan on Tuesday raised its forecast for defaults by companies with low credit scores in emerging markets, mainly because of rising contagion fears aroundChina's real estate sector, which theU.S. bank says will account for nearly 40 percent of all defaults by 2023.
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