Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

World shares sink as China Evergrande fears spark risk off

EconomySep 20, 2021 08:57PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A man looks at a board showing stock prices outside a brokerage in Tokyo, Japan, January 6, 2020. REUTERS/Kim Kyung-Hoon 2/2

By Lewis Krauskopf and Tom Arnold

(Reuters) - World stocks sold off sharply on Monday while safe-haven assets gained as troubles at property group China Evergrande fed concerns about spillover risks to the economy, sparking fresh investor worries ahead of a busy week of central bank meetings.

MSCI's gauge of stocks across the globe shed 1.63%, its biggest one-day percentage fall day in about two months, as Wall Street's benchmark S&P 500 sagged 1.7% and the tech-heavy Nasdaq tumbled 2.2%.

Investors moved into safe havens, with U.S. Treasuries gaining in price, pulling down yields, and gold rising.

Shares in Evergrande, which has been scrambling to raise funds to pay its many lenders, suppliers and investors, closed down 10.2% at HK$2.28.

Regulators have warned that its $305 billion of liabilities could spark broader risks to China's financial system if its debts are not stabilized.

“It started with the problems with the China Evergrande real estate company and I think it just has become a contagion,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

"Everybody was kind of afraid of September for this very reason," Tuz said. "It seems to be the month that... you have significant selloffs and here we go.”

On 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.

Economically sensitive sectors, including financials and energy, were hit particularly hard. Still, stocks pared losses late with U.S. indexes ending above their session lows.

The pan-European STOXX 600 index lost 1.67%, with mining stocks sliding.

The selloff on Monday has seen a cumulative $2.2 trillion of value wiped off the market capitalization of world equities from a record high of $97 trillion hit on Sept. 6, according to Refinitiv data.

(GRAPHIC: China CDS - https://fingfx.thomsonreuters.com/gfx/mkt/jnpweyarzpw/cds.PNG)

Worries over Evergrande come as a rally in equities has stalled recently with investors focused on the impact of coronavirus cases on the economy, and when central banks will ease back on monetary stimulus.

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

Investors were also keeping an eye on other central bank meetings spanning Brazil, Britain, Hungary, Indonesia, Japan, Norway, the Philippines, South Africa, Sweden, Switzerland, Taiwan and Turkey.

In currency trading, the dollar index rose 0.02%, with the euro up 0.01% to $1.1726.

The offshore Chinese yuan weakened versus the U.S. currency to its lowest level in nearly a month.

Benchmark 10-year notes last rose 16/32 in price to yield 1.3158%, from 1.37% late on Friday.

The iShares exchange-traded fund tracking high-yield corporate bonds fell 0.4%.

U.S. crude settled down 2.3% at $70.29 per barrel and Brent settled at $73.92, down 1.9% on the day.

Spot gold added 0.6% to $1,764.30 an ounce, rising off of a one-month low.

World shares sink as China Evergrande fears spark risk off
 

Related Articles

Shoe Carnival Falls as Q1 Revenue Misses Estimates
Shoe Carnival Falls as Q1 Revenue Misses Estimates By Investing.com - May 18, 2022

By Sam Boughedda Investing.com -- Shoe Carnival Inc (NASDAQ:SCVL) reported its first-quarter earnings on Wednesday, which saw profit surpass pre-pandemic levels. However, its...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (18)
Erski Gumby
SB20 Sep 21, 2021 3:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The dragon is …
jonathan seagull
jonathan seagull Sep 20, 2021 8:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
These days I keep getting laid as many Chinese girls as I should as world freedom fighter. God bless America.
Meru Pet
Meru Pet Sep 20, 2021 6:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tesla is finally affordable 🤣
Modern Matrix
Modern Matrix Sep 20, 2021 6:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it didn't drop much. was down way more in the past months since Feb. Tesla going to explode soon back to 775+ when to buy is the trick.
Leo San
Leo San Sep 20, 2021 6:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yall let this firm shake yall? Lmfao , oversold in alot usa stock! Thanks for cheaper shares is bullish
Mike Chen
Mike Chen Sep 20, 2021 5:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China will survive this small tremor. Time to do bargain hunting
Mo Ali
Av8er31 Sep 20, 2021 12:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Chinese knew our Healthcare industry is weak and government is in massive debt, what they do ? Unleash COVID-19. Made America go into debt 10x faster, and print enormous amounts of currency. Genius really. Now that the U.S. is in a vulnerable position, Evergrande will be their dagger. They will protect their own banks because they have the money to do so, and let it crash and burn, and in the process bring USA to its knees. Financial warfare, not one bullet fired. Genius.
Petru Alex
Petru Alex Sep 20, 2021 12:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
if you go by that line of tought, name of their dagger is really suggestive 👍
Darshana Trivedi
Darshana Trivedi Sep 20, 2021 9:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it is the next financial crisis in the making. it is the new Lehman brothers! stay safe. wear a Mask 😷🎭
Jack Sharma
Jack_2017 Sep 20, 2021 9:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yes every year you loosers want financial crises. it won't come in decades.
andy matalobos
andy matalobos Sep 20, 2021 9:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The United States might believe it needs to engage with China on the basis of a "position of strength" and revive a new "cold war." against the Chinese. "China is not the Soviet Union. The collapse of the Soviet Union was caused by itself, "China will destroy the U.S.A in a useless arrogant new Cold War 🥶
Ron Love
Ron Love Sep 20, 2021 8:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Doom! Panic! Sell everything now and buy rice and beans! Quit your jobs, sell your home and buy a tent and move into the woods!
Sajjad Ahmad
Sajjad Ahmad Sep 20, 2021 8:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what are you expecting us30 to go down
Cameroonian Genius
Cameroonian Genius Sep 20, 2021 8:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
finally some good advice in these comments
Zhikang Sim
Zhikang Sim Sep 20, 2021 8:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what happend if FED start tapering now 😴
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email