Shares split as fears of Evergrande fade
The lira has lost a fifth of its value against the dollar since the start of the year – Copyright AFP / File Peter PARKS
European and Asian stocks mainly rebounded on Friday as the risks of contagion from struggling Chinese real estate giant Evergrande eased.
U.S. stocks hit record highs, however, as disappointing Snap earnings pushed other social media stocks down.
Evergrande made a key offshore interest payment a day before the weekend deadline, Chinese state media reported on Friday, avoiding a default for now.
The crisis of one of the country’s largest real estate developers, drowning in $ 300 billion in debt, has rocked investor sentiment and fueled fears of a spillover into the wider economy.
Evergrande’s share price jumped more than 4% in Hong Kong, although this came a day after falling more than 12% on news that the planned sale of its unit of real estate services.
The payment helped boost sentiment in Asian and European equity trading.
However, US stocks fell, as the disappointing results of the Snapchat owner pushed other social media stocks down.
“Snap’s results are a reminder of the indirect impact that global supply chain issues can have on businesses,” said market analyst Craig Erlam of the Oanda currency trading platform.
“In their case, it is the ad spending that will be inhibited due to the supply problems of the companies during a generally lucrative period for the industry,” he added.
Overall, while investors are happy with the third-largest corporate earnings, the S&P 500 and Dow Jones hit new highs this week.
Stocks stumbled last month as investors worried about lingering supply chain problems fueling inflation and leading policymakers to start cutting back on economic stimulus.
But corporate profits far exceeded expectations as many companies were able to pass on price increases and maintain profits.
ThinkMarkets analyst Fawad Razaqzada said the records likely reflect investors’ opinion that supply bottlenecks and inflation surges are likely to be temporary after all, and therefore central banks will not tighten monetary policy too much.
“Central banks would not want to stifle economic growth by being too aggressive when they tighten their policies, especially since there have been signs of the recovery weakening in recent times,” he said. declared.
– Bitcoin falls –
In forex activity on Friday, the pound briefly hit a 20-month high against the euro amid heightened expectations that the Bank of England will raise its main interest rate next month to fight against high inflation.
The single currency has also been hit by a survey showing that the euro zone’s economic recovery is running out of steam.
“The ongoing pandemic means supply chain delays remain a major concern,” warned Chris Williamson, chief economist at IHS Markit, which compiles the Purchasing Managers Index which measures business confidence.
Elsewhere, bitcoin fell as profit takers entered after digital currency hit a record high of $ 66,976 this week.
The world’s first cryptocurrency has taken another step towards mainstream status as bitcoin has made its foray into Wall Street.
A bitcoin futures exchange-traded fund, a type of financial instrument, launched this week on the New York Stock Exchange.
The new fund is a more accessible vehicle that puts bitcoin within reach of even more investors.
– Key figures around 3:30 p.m. GMT –
New York – Dow: DROP less than 0.1% to 35,588.10 points
EURO STOXX 50: UP 0.8% to 4,190.83
London – FTSE 100: Up 0.2% to 7,204.55 (close)
Frankfurt – DAX: Up 0.5% to 15,542.98 (close)
Paris – CAC 40: + 0.7% to 6,733.68 (closing)
Tokyo – Nikkei 225: UP 0.3% to 28,804.85 (close)
Hong Kong – Hang Seng Index: EN up 0.4% to 26,126.93 (close)
Shanghai – Composite: DOWN 0.3% to 3,582.60 (closing)
Euro / dollar: up to $ 1.1635 from $ 1.1628 at 2050 GMT
Pound / dollar: DOWN to $ 1.3768 from $ 1.3794
Euro / pound: up to 84.51 pence against 84.26 pence
Dollar / yen: DROP to 113.72 against 114.02 yen
North Sea Brent: Up 0.4% to $ 84.96 per barrel
West Texas Intermediate: EN up 1.5% to $ 82.91 per barrel
strawberries / rl / dl