Global equities retreat after suspension of Evergrande shares | WGN 720 radio


Global stocks fell as the Hong Kong benchmark fell more than 2% after shares in struggling real estate developer China Evergrande were suspended.

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

China Evergrande did not say why it suspended its shares, but a Chinese financial information service, Cailian, said another major developer was considering buying Evergrande’s property management unit.

Evergrande is struggling to make payments on more than $ 300 billion in debt as it suffers a cash shortage brought on by the Chinese government’s tightening restrictions on debt financing.

The German DAX lost 0.2% to 15,131.70 while the CAC 40 in Paris lost 0.3% to 6,498.98. The UK FTSE 100 was stable at 7,027.72.

The future of Dow industrials slipped 0.3% while that of the S&P 500 was also down 0.3%.

In Asian trading, the Hang Seng fell 2.2% to 24,036.37 while Tokyo’s Nikkei 225 fell 1.1% to 28,444.89. Shares fell 1% in Taiwan.

The Australian S & P / ASX 200 climbed 1.3% to 7,278.50. His government on Friday outlined its intention to lift the pandemic ban on its vaccinated citizens traveling abroad from November, although it has yet to reopen to international travelers.

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

Crude prices edged down ahead of a meeting of major oil producers. There was no sign that an oil pipeline spill off the California coast was affecting oil prices.

An estimated 126,000 gallons (572,807 liters) of heavy crude may have leaked from an undersea pipeline off Orange County. At the end of Sunday, the leak was reported as plugged.

The environmental impact was likely to be far worse than any effect on the overall oil supply. The amount disclosed was around 3,000 barrels, while the United States produces more than 18 million barrels of crude oil per day.

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

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

Oil prices hovered at 3-year highs after Hurricane Ida hit a critical port that serves as the main center of support for the offshore oil and gas industry in the Gulf of Mexico in the United States, making matters worse supply, at least temporarily.

OPEC and other major oil producers were stung by deep production cuts in 2020 at the height of the pandemic and have been slowly ramping up production.

OPEC Plus members scheduled to meet on Monday may consider increasing production levels to meet growing demand, Mizuho Bank said in a comment.

Wall Street rebounded on Friday, led by the companies that would benefit most from a healthier economy. The S&P 500 gained 1.1% to 4,357.04. But US markets still had their worst week since the winter.

The Dow Jones Industrial Average climbed 1.4% to 34,326.46. The Nasdaq composite gained 0.8% to 14,566.70.

The 10-year Treasury yield was stable Monday at 1.48%.

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

Among the concerns that have weighed on the market: The Federal Reserve is about to let go of the accelerator on its support for markets, economic data has recently been mixed following a resumption in COVID-19 infections, rates of Corporate taxes could rise and political turmoil over the US debt ceiling and funding for President Joe Biden’s infrastructure initiative continues in Washington.

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

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