Market LIVE: Global shares sink as China Evergrande fears sour risk appetite

Market


The US Federal Reserve is due to meet on Tuesday and Wednesday as investors look for cues on when it will begin pulling back on its bond purchases.

Investors also await other central bank meetings spanning Brazil, Britain, Hungary, Indonesia, Japan, Norway, the Philippines, South Africa, Sweden, Switzerland, Taiwan and Turkey

21 Sep 2021, 07:12:18 AM IST

Bitcoin extends drop amid global selloff as stocks stumble

Cryptocurrency prices extended a slump Tuesday after a broad selloff sparked by worries about contagion from China Evergrande Group swept through global markets, Bloomberg reported.

Bitcoin slid as much as 7.6% to $40,237 in early Asian trading, dropping to the lowest level since the beginning of August, before paring some of the decline. Ether retreated below $3,000. Cardano fell about 10% over the last 24 hours, according to CoinGecko.com.

The losses mirrored the concerns in the broader market as investors weighed the risks coming from Evergrande debt crisis and this week’s Federal Reserve meeting. The S&P 500 fell 1.7% in its worst session since May overnight, and the stock selloff continued in Asia on Tuesday.

21 Sep 2021, 07:10:11 AM IST

Global shares sink as China Evergrande fears sour risk appetite

Global stock markets on Tuesday were caught in the grip of contagion fears sparked by troubles at China Evergrande as heightened concerns that the property giant could default on its massive debt prompted investors to flee riskier assets, Reuters reported.

Selling pressure persisted in early trade in Asia ahead of a major test for Evergrande this week, which is due to pay $83.5 million in interest relating to its March 2022 bond on Thursday. It has another $47.5 million payment due on Sept. 29 for March 2024 notes.

Both bonds would default if Evergrande fails to settle the interest within 30 days of the scheduled payment dates.

Japan’s Nikkei fell 2.0%, resuming trade after a market holiday on Monday while MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.2%.

MSCI’s ACWI shed 0.13%, a day after the gauge of the world’s 50 stock markets lost 1.63%, its biggest decline in two months, and leaving it teetering at its lowest level in two months.

Overnight, on the Wall Street, the Dow Jones Industrial Average fell 614.41 points, or 1.78%, to 33,970.47, the S&P 500 lost 75.26 points, or 1.70%, to 4,357.73 and the Nasdaq Composite dropped 330.07 points, or 2.19%, to 14,713.90.

 

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