21st September 2021 Morning Report

Tuesday 21st September 2021

Global stocks traded lower on Monday as fear of contagion from a potential collapse of China’s Evergrande prompted a broad sell-off and sent investors fleeing equities for safety. The Chinese real estate developer Evergrande’s shares tumbled in excess of 15% due to its excessive debt and its likely inability to make debt repayments later this week. Hong Kong’s Hang Seng index tanked 3.3%, while China’s Shanghai Composite was closed for a holiday. The Dow Jones Industrial Average dropped 800 points or 2.17% while the S&P 500 and the Nasdaq Composite fell 2.14% and 2.57% respectively. All 11 sectors were lower, with economically sensitive groups like energy down the most. In Europe Germany’s DAX 30 declined 2.31%, France’s CAC 40 lost 1.74% and Britain’s FTSE 100 fell 0.86%.

Investors are now focused on the upcoming Federal Reserve’s two-day policy meeting, as they await to see if the Federal Reserve will announce when the tapering of its asset purchases will begin. The consensus is for an actual announcement to be delayed until the November or December. Rising worries about the economic recovery pushed the 10 - year bond yield down to 1.3%.

West Texas Intermediate crude oil slid $1.34 to $70.61 a barrel, while gold ticked up $12.40 to $1,761.80 an ounce.

Morning Report 21 September 2021

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