Mood in the markets worsens again
04 October 2021
Monday has brought renewed selling to equity indices amid the worsening situation in China.
Stocks declined globally, with US equity futures trading half a percent lower, while EU bourses were seen with even more considerable losses.
The main reason for the negative sentiment was probably worries about China's property sector. For example, trading in shares of Evergrande was suspended after it missed a key interest payment for the second time last week as it struggles to refinance over 300 billion USD in liabilities.
Chinese markets were closed today due to National Holiday. Therefore, volatility could be even more increased during tomorrow's Asian session.
Additionally, On Friday, a CNBC report said that US Trade Representative Katherine Tai will announce today that China is not complying with US-China trade rules, also worsening sentiment slightly.
The EU and US calendars are relatively empty today, as usual on Mondays. Investors will pay attention only to US factory orders, expected to improve notably in August to -0.9% from -3.9% previously.
Elsewhere, the US dollar eased today, despite negative sentiment, which was somewhat surprising. Nevertheless, precious metals declined, with silver falling below 22.50% and gold trading near 1,750 USD.