Disappointing performance on most markets

2021-09-21T17:56:31
Evergrande markets Oil rises
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Disappointing performance on most markets: Disappointing performance on Asian and American exchanges oil and gold rally

 

Disappointing performance on most markets: Disappointing performance on Asian and American exchanges oil and gold rally

Most global stock markets have declined, with intensive sales, which has benefited precious metal, being the most popular safe haven.

Evest follows everything that goes on the markets in the following report:

How did the stock indices do on Wall Street and Asia?

The Japanese stock index Nikkei 225 fell 2.1%, and the Chinese stock exchanges closed on Tuesday for a public holiday. While US S&P 500 index’s futures are growing by 0.43%. 0.43%.

US stock indices declined significantly on a Monday trading basis against the backdrop of news from China the Dow Jones industrial index has fallen at the highest level in the past nine weeks (since July 19), the Standard & Poor’s 500 and the Nasdaq composite – since May 12. In the meantime, the Nasdaq composite index ended the day below 15000 points.

The Dow Jones Industrial Index fell 614.41 points (1.78٪) to 33970.47 points on Monday. The Standard & Poor’s 500 fell by 75.26 points (1.7%) to 4357.73 points, during the day.

The Nasdaq composite index declined by 330.06 points (2.2%) to 14713.9 points.

Investors in the US stock market have begun to prepare for the next Fed system meeting. Many experts expect the Federal Reserve to announce the start of scaling back the asset buyback program.

Morgan Stanley analysts have warned that the possibility of a correction of the S&P index down 20% or more is not ruled out.

According to experts, the decline is due to a variety of causes:

including deteriorating profit expectations, uncertainty surrounding monetary policy changes, and instability in the world’s second-largest economy, China.

There’s a lot of news hitting the stock market.

The news includes Evergrand’s concerns: geopolitical tensions

an upcoming Federal Reserve Board meeting

concerns about the need to raise the US government’s debt ceiling, according to MarketWatch.

Serious concerns among investors due to the Chinese company Evergrande

Of the 30 components of the Dow Jones index, only Merck & Co shares showed a price rise on Monday – by 0.35%. Chinese electric car manufacturers Li Auto Inc. (7.5%), Xpeng (6.2%) and New (6.2%).

Tesla, the US industry representative, also fell 3.9 percent.

The company manufactures and sells machinery in the People’s Republic of China.

In addition, the country’s ‘s largest banks and investment companies, including JPMorgan Chase (-3%), Bank of America (-3.4%), Wells Fargo (-1.4%), Morgan Stanley (-3.1%), Citigroup Inc (-3.8%), Goldman Sachs Group (-3.4%) and BlackRock (-2.2%), contributed.

The renewed fall in the price of iron ore has led to a fall in the value of mining companies, particularly Cleveland-Cliffs (- 9.7%), Freeport-McMoRan Inc. (-5.7%) US Steel Corp (-6.5%).

AMC Entertainment (-8.9%), energy company Occidental Petroleum (-5.4%) and Devon Energy (-5.4%) also declined in share prices.

At the same time, the market value of airlines rose amid predictions that US President Joe Biden was planning to lift travel restrictions for people who had been fully vaccinated against Covid-19.

In particular, stocks of American Airlines rose by 3%, United Airlines Holdings- 1.6% and Delta Airlines- 1.7%.

Serious concerns among investors due to the Chinese company Evergrande

Chinese real estate development company Evergrand group’s debt problems raised strong concerns among investors worldwide, sparking negative dynamics in global financial markets on Monday.

Evergrand is scheduled to make interest payments on two issues of bonds on Thursday.

Last week, the company reported serious liquidity problems and hiring consultants to restructure its debt. 

The developer delays the repayment of bank loans, as well as payments to suppliers and investors, and over the weekend it was revealed that it had begun to pay off debts to holders of real estate investment products.

Traders see a high probability that Evergrand will default.

Oil rises after two sessions of decline

Oil prices rebounded after falling by about 1% in the previous session. Prices show a rise for the first time in three sessions.

Brent crude futures for November on the London Futures Exchange rose by $0.59 (0.80%), to $74.51 per barrel. Brent crude fell $1.42 (1.88 percent) to $73.92 per barrel on Monday.

By this time, West Texas Intermediate crude futures’ prices for October in electronic trading for the New York Mercantile Exchange (NYMEX) had risen by $0.66 (0.94%), to $70.95 per barrel.

During the previous session, the future fell by $1.68 (2.3٪) to $70.29 per barrel.

Prices are backed up by signs that some production capacity in the Gulf of Mexico will not be restored for several months

due to damage caused by Hurricane Ida, according to Trading Economics. 

Oil company Royal Dutch Shell, the region’s largest producer, said its recharging terminal will be closed by the end of this year, due to the damages.

 Gold is rising amid a downturn in global stock markets

Gold prices rose moderately at US midday trading on Monday, with demand for a safe haven amid a rough start to the trading week in global stock markets. 

However, gold bulls must be disappointed that the performance of the metal, which is considered a safe haven today, has not been better, given the extent of losses in US stock indices.

The two metals are likely to see better safe haven demand this week if selling pressure continues in global stock markets.

October gold futures last rose $9.20 at $1,758.60.

 

Disappointing performance on most markets

 

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