London / Hong Kong — European stocks fell on Friday, but remained up this week as uncertainties about the fate of the debt-stricken Evergrande Group weighed on investor sentiment.
The region-wide STOXX 600 index fell 0.78% after a three-day rise. The UK FTSE 100 and the German FTSE 100 have also weakened.
Still, despite the sharp sellout on Monday, investors became more aggressive in hopes of a global growth outlook after the Federal Reserve Board’s policy meeting and the containment of the Evergrande crisis. , European stocks seem to end the week high.
MSCI’s widest non-Japanese Asia-Pacific stock index remained largely unchanged that day, but fell 0.7% this week, another story in Asia that it is ready to suffer losses for the third straight week.
Japan’s Nikkei Stock Average rose 2%, catching up with the global rise after the market closed due to a holiday.
China’s finest stocks have recovered most of their initial losses after weekly injections reached 270 billion yuan ($ 42 billion), the largest since January, with cash injections from the central bank.
US equity futures S & P 500 e-minis fell 0.34%.
Evergrande’s debt crisis continues to shake confidence.
Real estate developer stocks fell 11% on Friday, widening losses, following Reuters reports that some offshore bondholders hadn’t received interest payments by Thursday’s deadline. It rose 17.6% the day before after the company announced that it had agreed to settle interest payments on domestic bonds.
Global investors are nervous as Evergrande’s debt repayment obligations, working under a $ 305 billion debt pile, have raised concerns that its malaise could pose systemic risk to China’s financial system. It was in a state.
Ray Feliz, Credit Suisse’s chief investment officer in South Asia, said investors were worried about China’s outlook due to the real estate sector’s predicament and numerous regulatory changes, but there are positive sentiments elsewhere. Said there was.
“Growth in large advanced economies is out of trend, likely out of trend, and monetary policy is very supportive of asset prices until mid-next year,” he said.
“Sometimes shocks to the system give us a fix, but due to the weight of the money needed for the house, these are shallower than in the last few decades.”
The Federal Reserve Board said Wednesday that it could start reducing monthly bond purchases by November and interest rates could rise faster than expected by next year. The November deadline was priced primarily by the market.
As stock prices rose on Thursday, the dollar index plummeted overnight against a basket of peers, dropping from a near-month high to a week-low before it settled in European time. ..
Benchmark 10-year Treasury yields were only 1.44%, the highest since July 2nd, up 15 basis points in the last two days.
Most of the profits came overnight after the Norges Bank’s rate hike, and hawkish remarks from the Bank of England heightened market expectations that the Fed would begin to taper off by the end of the year.
Jan von Gerich, Chief Analyst of Nordia, said:
“But there is a difference between the US and the euro area, where it is easy to accept the story that price pressure is temporary.”
Crude oil prices have risen for the fourth straight day due to global supply concerns caused by storms in the United States.
Brent crude rose 0.4% to $ 77.56 a barrel and US oil rose 0.2% to $ 73.46 a barrel.
Friday’s Friday showed some gain, with spot prices rising 0.7% to $ 1,754 per ounce. It fell by more than 1 percent the day before, as higher yields hurt interest-free assets.
By Tommy Wilkes, Alun John, Anushka Trivedi