Other reasons for the bump include Norway’s becoming the first rich economy to raise rates since Covid-19 struck, and China Evergrande shares leaping
London — World markets rallied on Thursday after the US Federal Reserve confirmed plans to start reeling in stimulus, Norway became the first rich economy to raise rates since Covid-19 struck and China Evergrande shares leapt ahead of a crucial debt payment.
Asia’s nerves were also calmed after China injected fresh cash into its financial system ahead of an $83.5m Evergrande bond coupon deadline that could be the start of one of the world’s largest corporate defaults in history. The “bothersome reality” though is that the global economy is slowing down faster than was assumed, most likely led by China. “The edges of reality will come again to the fore, just not now and not for long,” Galy added.
“It's not the debt that worries me, it is who then builds all the apartments?” said Ewan Markson-Brown, lead manager for Asia equity strategies at Crux Asset Management, considering that Evergrande has 1,300 real-estate projects running in more than 280 cities. Overnight, US Federal Reserve chair Jerome Powell also downplayed the global effects of the Evergrande saga and said it was more relevant to the Chinese economy.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
JSE lifts ahead of Reserve Bank policy announcementMeanwhile, markets are expecting US tapering to start in November, although it could begin as soon as October, one analyst says
Read more »
JSE may start on a positive note ahead of repo rate announcementGlobal markets are breathing more easily as Evergrande concerns abate and the US signals it is sticking with stimulus
Read more »
JSE may start on a positive note ahead of repo rate announcementGlobal markets are breathing more easily as Evergrande concerns abate and the US signals it is sticking with stimulus
Read more »
Gold rises as watchers await US Fed’s decision on taperingHoldings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.1%
Read more »
Risk rally likely as stocks improve after Evergrande reliefHowever, anticipation that the US Fed may move a step closer to tapering later on Wednesday has kept a lid on gains and the mood
Read more »
Taliban can take away freedom of dress, but designer won’t give up styleA unique approach to tradition pushes back against the now government’s oppressive ideals
Read more »