Financial Markets Daily Report
21 September 2021

Financial markets started the week with a risk-off session fuelled by concerns that Evergrande, a giant property developer in China, is facing a liquidity crisis and might not be able to service its debt repayments.

FMDR
  • Financial markets started the week with a risk-off session fuelled by concerns that Evergrande, a giant property developer in China, is facing a liquidity crisis and might not be able to service its debt repayments. 
  • In this context, stock indices plunged across the board. The Eurostoxx50 and the S&P500 reached a level not seen since late July while yields on sovereign bonds edged lower on both sides of the Atlantic. In FX markets, safe-haven currencies strengthened and the euro fluctuated below $1.18.
  • In commodity markets, oil prices edged modestly down as investors traded with a risk-aversion mood while European gas prices continued to increase.
  • Today the OECD will release its Interim Economic Outlook for the world economy and all G20 countries. In addition, central banks in Sweden, Hungary and Indonesia are due to hold policy meetings.
     
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