Red trading in Europe and Asia and a new crisis for the Chinese Evergrande

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Red trading in Europe and Asia and a new crisis for the Chinese Evergrande

Red trading in Europe and Asia and a new crisis for the Chinese EverGrande :Today begins a new trading week, with anticipation for the OPEC meeting, after oil reached its highest level in more than 3 years at the end of last week.

Evest follows the latest news regarding trading in global markets in the following report:


Trading session Red in Europe

Disappointing data on the old continent

Oil falls from its highest level in 3 years

Hong Kong Stock Exchange suspends trading of Evergrande shares

Negative trading in Asia and positive in the United States

Trading session Red in Europe

Stock markets in Western Europe ended the first trading session in October in the “red”.

The exception to the general trend was the Spanish IBEX 35, which grew slightly – by 0.04%.

The composite index of the largest companies in the Stoxx Europe 600 region decreased by 0.42% and reached 452.9 points.

Britain’s FTSE 100 was down 0.8%, France’s CAC 40 – 0.04%, and Italy’s FTSE MIB – 0.3%.

Germany’s DAX is down 0.7%, as the index has lost more than 3% since the start of the week – its maximum since Jan. 25.

Investors analyzed statistics indicating accelerating inflation and slowing economic recovery from the effects of COVID-19.

In addition, they are under pressure from the ongoing energy crisis in China, which could lead to even greater problems in global supply chains,

especially ahead of the New Year and Christmas holidays, when demand for goods has traditionally increased.


Disappointing data on the old continent

In the eurozone, inflation accelerated in September to 3.4%, the highest level since 2008, up from 3% the previous month,

according to preliminary data from the European Union’s statistical office.

Experts on average expected consumer price growth to accelerate to 3.3% in September, Trading Economics reported.

Germany’s retail sales growth in August fell below analyst expectations. The index rose 1.1% from the previous month,

according to data from the Federal Statistics Agency (Destatis).

Economists surveyed by Trading Economics expected growth of 1.5% on average.

Meanwhile, the country’s inflation data, published the day before, showed that consumer prices in September rose 4.1% year-on-year.

Final data from IHS Markit showed that the September PMI for the Eurozone manufacturing sector fell to its lowest level since February at 58.6 points.

Last month, the index was at 61.4 points.


In Germany, the Manufacturing PMI was revised to 58.4 from 58.5 previously announced by IHS Markit.

meanwhile in August, the index was 62.6 points. In the UK, the index fell to 57.1 points from 60.3 in August.

However, IHS experts previously estimated the country’s September PMI at 56.3.

The French Index

The French Manufacturing Purchasing Managers’ Index (PMI) fell last month to 55 points from 57.5 points,

the Italian one – to 59.7 from 60.9 points. The Spanish PMI fell to 58.1 from 59.5 in August.

In general, the decline in manufacturing activity in European countries was caused by problems in global supply chains and as a result,

higher purchase prices, according to the HIS report.

UK sporting goods retailer JD Sports fell 1.3% after it was reported that the British regulator had started an investigation into potential antitrust violations in the country as part of its partnership with Leicester City football club.

Daimler AG gained 0.9%.

Shareholders of the German car company agreed to separate the Daimler Truck division into an independent company with a separate list.

The remainder of Daimler AG, which will exclusively produce premium and luxury passenger cars and minivans,

will be renamed Mercedes-Benz Group AG from February 2022.


Oil falls from its highest level in 3 years/b>

Oil prices are falling on Monday after rising to a three-year high last week.

Traders are awaiting the outcome of today’s OPEC+ meeting, on October 4th.

Some analysts believe that the parties to the agreement may agree to increase production further than previously discussed, according to Dow Jones.

Brent crude oil futures prices for December on the London ICE Futures Exchange fell $0.11 (0.14%) to $79.17 a barrel. On Friday, the price of Brent crude rose 0.97 dollars (1.2 percent) to 79.28 dollars a barrel.

November futures for West Texas Intermediate crude were cheaper in electronic trading on the New York Mercantile Exchange (NYMEX) by $0.12 (0.16%), to $75.76 a barrel.

In the previous session, the contract rose by $0.85 (1.1%), to $75.88 a barrel, the highest level since October 2018.

According to American oilfield services company Baker Hughes, the number of operating rigs operating in the United States increased by 7 units last week and reached 428 rigs.

Thus, the index rose for the fourth consecutive week.

Hong Kong Stock Exchange suspends trading of Evergrande shares

The Hong Kong Stock Exchange has suspended trading in shares of Evergrande, China’s second-largest developer, and its division, Evergrande Property Services Group, the Associated Press reports. Neither the company nor the stock exchange disclosed the reason for this decision.

Chinese news site Cailian, which is linked to the state-run Securities Times,

reported that developer Hopson Development Holdings has decided to buy a controlling stake in Evergrande Property Services Group.

Hopson shares in Hong Kong were also suspended on Monday.

Company documents, filed on the stock exchange, indicate that this was done before the announcement of a major deal in which Hopson would buy shares in another publicly listed company.

China’s Evergrande is facing serious financial problems.

Its total debt exceeds $300 billion, which is equivalent to 2% of China’s GDP.

It has missed interest payments to its creditors, suppliers and investors.

Markets fear that the developer’s collapse carries systemic risks to the Chinese economy and could negatively impact foreign economies.


Negative trading in Asia and positive in the United States

Stock indices in the Asia-Pacific region on Monday mostly show negative dynamics, in particular, the Japanese Nikkei 225 index lost 1.43%. US S&P 500 futures were down 0.33%.

US stock indices ended Friday’s trading with a growth: Dow Jones added 1.43%, Standard & Poor’s 500 – 1.15%, Nasdaq – 0.82%.

An index of business activity in the US manufacturing sector rose in September to 61.1 points from 59.9 points in August, according to data from the Institute for Supply Management (ISM).

On average, experts expected the index to drop to 59.6 points.

According to September’s results, the consumer confidence index in the US rose – up to 72.8 points compared to 70.3 points in the previous month,

according to final data from the University of Michigan that calculates this indicator.

The index was previously estimated at 71 points. Analysts did not expect that revision.