After an Evergrande-driven downturn, European stocks have rebounded.
European stock markets rebounded on Tuesday, with investors maintaining a wary eye on China Evergrande, the struggling property giant whose probable collapse caused a sell-off across global markets.
In early afternoon eurozone trade, London stocks climbed 1.1 percent, Frankfurt gained 1.4 percent, and Paris gained 1.5 percent.
Major European stock indexes fell between one and two percent on Monday, mirroring Wall Street’s losses.
In Asia on Tuesday, Hong Kong ended the day up 0.5 percent, while Tokyo fell 2.2 percent and Shanghai was closed for a Chinese public holiday.
Oil and bitcoin prices rose, as the dollar moved in a range against its key competitors.
On the corporate front, Universal Music, the world’s largest record label with a roster of megastars ranging from The Beatles to Taylor Swift, soared on its stock market debut Tuesday, valuing the corporation at more than $50 billion.
In the meantime, Sorare, a French gaming business that allows users to collect and exchange virtual football stickers, announced that it had raised a record $680 million (580 million euros) in funding from investors, valuing the company at $4.3 billion.
“After Monday’s massive crash over concerns about the fallout from Evergrande’s debt troubles, sentiment improved a little on Tuesday,” said ThinkMarkets analyst Fawad Razaqzada.
“The improved mood reflects hope about travel returning to some kind of routine after the US announced that properly vaccinated people will be allowed to travel to the US.”
Washington said late Monday that, provided all flight passengers are completely vaccinated and undergo testing and contact tracing, the Covid travel bans would be lifted in November.
The news bolstered the tourism industry, but investors are still worried about Evergrande, one of China’s largest developers.
Markets are also dealing with a projected tightening of US monetary policy, increased Covid infections, a sluggish global economy, rising inflation, and a looming oil shortage.
The OECD warned of a “uneven” global economic rebound on Tuesday, lowering its global and US growth predictions for 2021 while lifting its outlook for Europe.
In Asian trade, Hong Kong-listed real estate businesses eked out gains after taking the brunt of the selling on Monday, losing more than 10% of their value.
After last week’s slump, which was fueled by preparations for a government crackdown on the industry, Henderson Land, New World Development, Sino Land, and Sun Hung Kai Properties all saw increases, as did Macau-based casino operators.
Evergrande, on the other hand, possesses. Brief News from Washington Newsday.