Markets sold off on Monday amid worries about Chinese property giant Evergrande’s massive debt load, and one expert warns that there is more agony coming for anyone connected to Evergrande. “There’s going to be a lot of pain — almost everybody involved with this is going to get a chunk taken out of them, if not worse,” Leland Miller, CEO of China Beige Book, told Yahoo Finance (video above). Evergrande currently has over $305 billion in liabilities, and some worry about the potential risks… Source link
Read More »Here’s the biggest risk from the Evergrande crisis, says Goldman Sachs
The biggest fear investors should have with the crisis gripping overly indebted Chinese real estate developer Evergrande is global contagion, argues Goldman Sachs. “The danger is precisely the contagion effect, should a default occur without clear ‘ring-fencing’ of spillovers to other parts of the real economy or financial sector. Events over the past week suggest risks of inching toward that direction,” said Goldman Sachs Hui Shan in a research note on Monday. Shan points out that he is… Source link
Read More »Evergrande crisis triggers this short-term stock market sell signal
The financial crisis gripping major Chinese property developer Evergrande has triggered a sharp turn in broader stock market sentiment, as seen by the S&P 500 dropping below its key 50-day moving average. With news of the Evergrande debacle gaining steam last Friday, the S&P 500 closed the session below the 50-day moving average for the first time since June. The tenuous situation of Evergrande — which includes potential missed debt repayments — gained steam over the weekend and caused… Source link
Read More »Wall St. sinks amid China’s Evergrande contagion fears, US debt politics
Stocks plunged on Monday, with major indices tumbling by over 1% at the opening bell, as investors nervously eyed the potential ripple effects of the default of a major Chinese real estate company, as well as ongoing debates over the debt limit in Washington. After defying gravity for most of the summer, September is shaping up to be a tough month for markets, with major benchmarks in retreat for three consecutive weeks. At Wall Street’s opening bell, the Dow sank by more than 500 points,… Source link
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