Global stock markets recover ground as crisis-hit Evergrande reveals bond settlement

While the worries over Evergrande's future have eased, commentators warn they have not gone away as there is no information on the fate of another, larger, bond repayment also due on Thursday.

Global stock markets recover ground as crisis-hit Evergrande reveals bond settlement

Image: A view of the logo of the Evergrande Group at Evergrande Center in Shanghai

Global stock market values are climbing after a massive Chinese company, seen as having the largest debt pile in the world, was able to sooth worries over its imminent future.

Investors have been rattled this week by the state of debts – seen as high as $310bn – at real estate-to-carmaker Evergrande.

As the clock ticked down to a deadline for interest payments to be made on bonds this week, stock markets plunged on fears that any default would expose China’s banks and other financial institutions to huge losses and destabilise the country’s financial system.

Global stock markets recover ground as crisis-hit Evergrande reveals bond settlement

Image: Global stock markets have taken big hits this week as investors react to the implications of the company's cash crunch. Pic: AP

Banks including UK-based HSBC are also understood to be holders of its debt.

Some commentators had even described the situation as China’s Lehman moment – a comparison with the collapse of US investment bank Lehman Brothers which sparked the 2008 financial crisis.

But concerns over its immediate future eased on Monday when Evergrande’s parent firm said it had settled the interest payments that were due on Thursday and “resolved” the bond, which was sold to domestic investors and due to mature in 2025, following “private negotiations”.

The announcement did, however, fail to address all imminent concerns over its financial health as no information was divulged on the fate of another, larger, bond interest payment that is also due on Thursday to foreign investors.

Those concerns were soothed, commentators said, by an injection of cash worth £10.3bn into the banking system by China’s central bank.

It coincided with the opening of China’s own markets for the first time this week following an autumn holiday – exposing them to the contagion fears around Evergrande after the chaos elsewhere.

The Shanghai Composite gained 0.4% by the close of trading while, in Europe, the FTSE 100 clawed back ground it had lost on Monday to be 1.2% up in late morning deals.

Global stock markets recover ground as crisis-hit Evergrande reveals bond settlement

Its value was boosted by mining and financial stocks though gambling firm Entain led the way thanks to a takeover offer from an American suitor.

US futures suggested the Dow Jones Industrial Average and wider S&P 500 would open around 0.8% up.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: “‘A series of temporary fixes to ominous global problems has pushed the FTSE 100 back over the… 7,000 mark but there’s a chance the nuts and bolts may weaken again, and the wheels could fall off the recovery.”

“The deal to settle a domestic bond payment due to be made by the crisis hit Chinese property group Evergrande, seems to have calmed nerves among investors and stopped immediate contagion to other sectors.

“Mining stocks, which were among the worst hit on Monday when fears mounted that a collapse of the firm was imminent, are among the top risers today.

“Worries about the immediate impact on demand for raw materials for construction have subsided but with another debt payment due to be made by Evergrande on an overseas bond tomorrow, the myriad problems facing the group are far from over,” she wrote.

Internet Explorer Channel Network
News Related

OTHER NEWS

Taher Badshah of Invesco on pockets in mid and small-caps where valuation comfort exists

Stock markets rallied massively in the last one-and-a-half years. Taher Badshah, chief investment officer of Invesco Mutual Fund, who is known for his contrarian style, decodes how market valuations are ... Read more »

First healthcare premium known: monthly basic insurance premium 3.25 euros more expensive

Everyone with basic insurance with health insurer DSW will pay 3.25 euros more each month next year, bringing the premium to 127.75 euros. As usual, DSW is the first insurer ... Read more »

Evergrande: US fund unimpressed as China treats credit distress, bond defaults with kid gloves

China is treating recent credit crunches involving private companies like China Evergrande Group with kid gloves, leaving much to be done to strengthen investor confidence in the world’s second-largest bond ... Read more »

Mexico to begin packaging Sputnik V vaccine in second half of November - statement

The Mexican regulator issued a permit for the emergency use of Sputnik V in the country to protect residents from the coronavirus infection in early February Read more »

Inox Wind Standalone September 2021 Net Sales at Rs 231.03 crore, up 70.98% Y-o-Y

Reported Standalone quarterly numbers for Inox Wind are: Net Sales at Rs 231.03 crore in September 2021 up 70.98% from Rs. 135.12 crore in September 2020. Quarterly Net Loss at ... Read more »

California Soft Standalone September 2021 Net Sales at Rs 3.35 crore, up 503.6% Y-o-Y

Reported Standalone quarterly numbers for California Software are: Net Sales at Rs 3.35 crore in September 2021 up 503.6% from Rs. 0.56 crore in September 2020. Quarterly Net Profit at ... Read more »

Eco Recycling Consolidated September 2021 Net Sales at Rs 4.47 crore, up 129.23% Y-o-Y

Reported Consolidated quarterly numbers for Eco Recycling are: Net Sales at Rs 4.47 crore in September 2021 up 129.23% from Rs. 1.95 crore in September 2020. Quarterly Net Profit at ... Read more »

PM Narendra Modi, President Ram Nath Kovind greets people on Milad-un-Nabi

Prime Minister Narendra Modi (Illustration: Moneycontrol) Prime Minister Narendra Modi on Tuesday greeted people on the occasion of Milad-un-Nabi, the birthday of Prophet Muhammad. Modi said, may the virtues of ... Read more »

HDFC Bank Standalone September 2021 Net Interest Income (NII) at Rs 17,684.39 crore, up 12.09% Y-o-Y

Reported Standalone quarterly numbers for HDFC Bank are: Net Interest Income (NII) at Rs 17,684.39 crore in September 2021 up 12.09% from Rs. 15776.39 crore in September 2020. Quarterly Net ... Read more »

Cyient Standalone September 2021 Net Sales at Rs 429.40 crore, up 22.58% Y-o-Y

Reported Standalone quarterly numbers for Cyient are: Net Sales at Rs 429.40 crore in September 2021 up 22.58% from Rs. 350.30 crore in September 2020. Quarterly Net Profit at Rs. ... Read more »

Eco Recycling Standalone September 2021 Net Sales at Rs 4.44 crore, up 127.69% Y-o-Y

Reported Standalone quarterly numbers for Eco Recycling are: Net Sales at Rs 4.44 crore in September 2021 up 127.69% from Rs. 1.95 crore in September 2020. Quarterly Net Profit at ... Read more »

UIDAI to host ‘Aadhaar Hackathon 2021' for young innovators from October 28

Aadhaar Enrolment and MBU (at 5 & 15 yrs) are free. Charges for updating Aadhaar are fixed: Rs 50 for demographic update & Rs 100 for biometric update (with or ... Read more »

Inox Wind Consolidated September 2021 Net Sales at Rs 165.84 crore, down 3.07% Y-o-Y

Reported Consolidated quarterly numbers for Inox Wind are: Net Sales at Rs 165.84 crore in September 2021 down 3.07% from Rs. 171.09 crore in September 2020. Quarterly Net Loss at ... Read more »

California Soft Consolidated September 2021 Net Sales at Rs 3.35 crore, up 503.6% Y-o-Y

Reported Consolidated quarterly numbers for California Software are: Net Sales at Rs 3.35 crore in September 2021 up 503.6% from Rs. 0.56 crore in September 2020. Quarterly Net Profit at ... Read more »

Gagan Gases Standalone September 2021 Net Sales at Rs 0.81 crore, up 53.23% Y-o-Y

Reported Standalone quarterly numbers for Gagan Gases are: Net Sales at Rs 0.81 crore in September 2021 up 53.23% from Rs. 0.53 crore in September 2020. Quarterly Net Profit at ... Read more »

Den Networks Standalone September 2021 Net Sales at Rs 295.53 crore, down 4.7% Y-o-Y

Reported Standalone quarterly numbers for Den Networks are: Net Sales at Rs 295.53 crore in September 2021 down 4.7% from Rs. 310.09 crore in September 2020. Quarterly Net Profit at ... Read more »

Avenue Supermar Consolidated September 2021 Net Sales at Rs 7,788.94 crore, up 46.79% Y-o-Y

Reported Consolidated quarterly numbers for Avenue Supermarts are: Net Sales at Rs 7,788.94 crore in September 2021 up 46.79% from Rs. 5,306.20 crore in September 2020. Quarterly Net Profit at ... Read more »

Vikas Life Standalone September 2021 Net Sales at Rs 67.49 crore, up 111.85% Y-o-Y

Reported Standalone quarterly numbers for Vikas Lifecare are: Net Sales at Rs 67.49 crore in September 2021 up 111.85% from Rs. 31.86 crore in September 2020. Quarterly Net Profit at ... Read more »

Vikas Life Consolidated September 2021 Net Sales at Rs 67.49 crore, up 111.85% Y-o-Y

Reported Consolidated quarterly numbers for Vikas Lifecare are: Net Sales at Rs 67.49 crore in September 2021 up 111.85% from Rs. 31.86 crore in September 2020. Quarterly Net Profit at ... Read more »

Bowtie raises US$22.6 million from Mitsui-led investors, tapping Japanese firm's financial muscles and strategic advice for growth

Bowtie Life Insurance, Hong Kong’s first virtual insurer, said it raised US$22.6 million in its second funding round from a group of investors led by Mitsui & Co., getting both ... Read more »

AB Money Standalone September 2021 Net Sales at Rs 57.19 crore, up 16.81% Y-o-Y

Reported Standalone quarterly numbers for Aditya Birla Money are: Net Sales at Rs 57.19 crore in September 2021 up 16.81% from Rs. 48.96 crore in September 2020. Quarterly Net Profit ... Read more »

Morarka Finance Standalone September 2021 Net Sales at Rs 3.60 crore, up 590.14% Y-o-Y

Reported Standalone quarterly numbers for Morarka Finance are: Net Sales at Rs 3.60 crore in September 2021 up 590.14% from Rs. 0.52 crore in September 2020. Quarterly Net Profit at ... Read more »

Benares Hotels Standalone September 2021 Net Sales at Rs 10.60 crore, up 263.26% Y-o-Y

Reported Standalone quarterly numbers for Benares Hotels are: Net Sales at Rs 10.60 crore in September 2021 up 263.26% from Rs. 2.92 crore in September 2020. Quarterly Net Profit at ... Read more »

Cyient Consolidated September 2021 Net Sales at Rs 1,111.60 crore, up 10.79% Y-o-Y

Reported Consolidated quarterly numbers for Cyient are: Net Sales at Rs 1,111.60 crore in September 2021 up 10.79% from Rs. 1,003.30 crore in September 2020. Quarterly Net Profit at Rs. ... Read more »

HCL Tech Consolidated September 2021 Net Sales at Rs 20,655.00 crore, up 11.08% Y-o-Y

Reported Consolidated quarterly numbers for HCL Technologies are: Net Sales at Rs 20,655.00 crore in September 2021 up 11.08% from Rs. 18,594.00 crore in September 2020. Quarterly Net Profit at ... Read more »

Sangam India Consolidated September 2021 Net Sales at Rs 638.68 crore, up 104.42% Y-o-Y

Reported Consolidated quarterly numbers for Sangam (India) are: Net Sales at Rs 638.68 crore in September 2021 up 104.42% from Rs. 312.44 crore in September 2020. Quarterly Net Profit at ... Read more »

HDFC Bank Consolidated September 2021 Net Interest Income (NII) at Rs 19,105.16 crore, up 14.34% Y-o-Y

Reported Consolidated quarterly numbers for HDFC Bank are: Net Interest Income (NII) at Rs 19,105.16 crore in September 2021 up 14.34% from Rs. 16709.09 crore in September 2020. Quarterly Net ... Read more »

Vikas Ecotech Standalone September 2021 Net Sales at Rs 73.97 crore, up 69.76% Y-o-Y

Reported Standalone quarterly numbers for Vikas Ecotech are: Net Sales at Rs 73.97 crore in September 2021 up 69.76% from Rs. 43.57 crore in September 2020. Quarterly Net Profit at ... Read more »

Avenue Supermar Standalone September 2021 Net Sales at Rs 7,649.64 crore, up 46.6% Y-o-Y

Reported Standalone quarterly numbers for Avenue Supermarts are: Net Sales at Rs 7,649.64 crore in September 2021 up 46.6% from Rs. 5,218.15 crore in September 2020. Quarterly Net Profit at ... Read more »

Artson Engg Standalone September 2021 Net Sales at Rs 45.18 crore, up 20.63% Y-o-Y

Reported Standalone quarterly numbers for Artson Engineering are: Net Sales at Rs 45.18 crore in September 2021 up 20.63% from Rs. 37.45 crore in September 2020. Quarterly Net Profit at ... Read more »

Superior Finlea Standalone September 2021 Net Sales at Rs 0.25 crore, down 38.67% Y-o-Y

Reported Standalone quarterly numbers for Superior Finlease Limited are: Net Sales at Rs 0.25 crore in September 2021 down 38.67% from Rs. 0.41 crore in September 2020. Quarterly Net Profit ... Read more »

‘Restaurant on Wheels' to offer fine-dining experience to train lovers

The Central Railway (CR) has set up a ’Restaurant on Wheels’ at the iconic Chhatrapati Shivaji Maharaj Terminus (CSMT) in South Mumbai. It will offer a unique experience to diners inside ... Read more »

COVID-19: Revealed - how many jobs were lost in the music industry as a result of the pandemic

Almost one in three jobs in music was lost during the pandemic as the sector struggled with the "devastating impact" of COVID-19. Read more »

Is economics education hopelessly outdated?

In 2008, the global economy was taken by surprise by a crisis of unprecedented magnitude. Stock markets tumbled, banks needed massive support and workers worldwide lost their jobs. It provoked ... Read more »

BMC allows reopening of cinema halls, drama theatres from October 22 with COVID-19 norms

It was originally built as a theatre in British times, when the entire colonial administration would decamp from the blistering summer heat of the plains for the cool mountain climate ... Read more »

Cryptocurrency Prices Today on October 19: Bitcoin, Ethereum fall, Dogecoin surges over 4%

Cryptocurrency (Representative image) Cryptocurrency prices continue to be in a mix of red and green on October 19. The global cryptocurrency market cap is Rs 186.37 lakh crores, a 0.82 ... Read more »

US court dismisses plea filed by Nirav Modi, associates

Nirav Modi A bankruptcy court in New York has dismissed a petition of fugitive of diamond merchant Nirav Modi and his associates, seeking dismissal of fraud allegations against them. The ... Read more »

Hindustan Unilever Q2 Results Preview | Double-digit growth in topline likely with support from all segments

FMCG major Hindustan Unilever has seen a 22-percent rally in its share price amid consolidation in the last one year and, it gained 9 percent in the year so far. The ... Read more »

All issues will be resolved, says Charanjit Singh Channi after Navjot Sidhu flags issues in letter to Sonia Gandhi

Punjab Chief Minister Charanjit Singh Channi said the Lakhimpur violence reminded him of the Jallianwala Bagh massacre in 1919. All matters will be resolved and the party’s agenda will be ... Read more »

Cannot cut corners' in approving Covaxin, says WHO, seeks more info from Bharat Biotech

File image of a vial of Covaxin vaccine The World Health Organisation (WHO) on Monday said it was expecting additional information from India’s Bharat Biotech regarding its COVID-19 jab Covaxin, ... Read more »