To make its bond interest payments, Chinese realtor Evergrande Group raised $5.1 billion by selling a 51% stake to Hopson Development. Asian markets remained under pressure as a result of this matter on Monday trading.
Inflation fears stemming from the broader global markets are weighing heavy on European stock markets. Other world’s markets are also falling.
Both Dow Jones and S&P 500 had it extremely rough as September drew to a close, showing evidence that US stocks performed poorly.
Wall Street remains jittery as bond yield continues to drag the tech stocks to the south. On the other hand, the fears of a potential US debt default weigh around.
Stock markets across the Asia Pacific entered heavy correction following strong market correction on Wall Street due to rise in bond yields.
On Monday, the surge in Treasury yield saw the financial stocks soaring high. However, the tech sector took a beating dragging Nasdaq down.
However, some believe that the stock futures rise and stagnant interest rates might spur the Federal Reserve to discontinue the ongoing stimulus checks.
The Federal Reserve has hinted that it will soon start tapering its bond purchase program. However, for now, it has kept the interest rates at zero.
Many analysts have maintained that the China Evergrande is not too big to fail, a phrase that suggests the company’s fall may not have so much of a pervasive impact on the broader economy.
Bitcoin and other assets experienced market drops in premarket trading on Monday, responding to several serious factors such as the COVID pandemic.
A major crash in the Hang Seng index has put Wall Street under pressure at the start of the third week of September. All eyes will be about Fed’s decision on tapering its easy monetary policy.
On Wednesday, both the indices surged up to 1% as bullish economic news drives optimism on Wall Street.
The US stock market remains under pressure despite better-than-feared inflation data. All stock indices are in the red.
The China retail sales figures did not hit the projected target because of the country’s struggles with the COVID-19 Delta variant.
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