European shares slump amid Evergrande frets, global markets edge lower
by SOURAV D | VIEW 2528
On Friday, a basket of European bourses had wrapped up the session in a downbeat tenure with major global equity indices reporting hefty losses amid worries over a potential spread of contagions from Evergrande bond-default. In point of fact, in the day’s tottering in global equity indices was almost entirely prompted by a heightening up of worries over a plausible ripple effect of bond defaults in China’s real estate giant, Evergrande, while Evergrande frets had mounted further following a statement from the world’s 122nd-largest corporation’s EV unit that said the subsidiary would face off an uncertain future without a fresh influx of liquidity. However, Evergrande had pledged to issue bond pay-outs in a Yuan-denominated coupon and Beijing had injected a substantial scale of upsum into the economy, but, Evergrande’s silence on Thursday’s default on nearly $88 million Us Dollar-denominated bond pay-outs ahead of more bond payments due next week, had fanned up the flames further.
European shares, major global equity indices falter on Evergrande default
Citing statistics, in the day’s global equity market wind-down, regional pan-European STOXX 600 shed 0.90 per cent as a weaker-than-anticipated German business confidence data had largely weighed on market participants’ morale, while MSCI’s gauge of global stocks that traces data from 49 stock exchanges, lost 0.15 per cent, snapping up a three straight session of gains.
Besides, London’s blue-chip FTSE 100 shed 0.38 per cent to 7,051.48 and French CAC 40 lost 0.95 per cent to 6,638.46, while Frankfurt’s DAX dwindled 0.72 per cent to 15,531.75. Elsewhere in the Europe, Italy’s FTSE MIB dipped 0.43 per cent to 25,968.84, while Madrid’s IBEX 35 edged 0.04 per cent lower to 8,873.10.
On the week, London’s FTSE 100 gained 1.26 per cent, French CAC 40 climbed 1.04 per cent and Frankfurt’s DAX added 0.27 per cent, while Italy’s FTSE MIB jumped 1.01 per cent and Madrid’s IBEX 35 leapt 1.28 per cent.
Meanwhile, a global investment strategist with Commonwealth Financial Network, Anu Gaggar, said, “For foreign investors, (Evergrande) is still an evolving story. There is a lot of uncertainty which will play out in the next month”.