Today the market was shocked by news of Evergrande, China’s second -largest real estate firm that has sunk shares in Asian markets into the red sea and raised market concerns that the financial problems the company faces will bring a bigger crisis to global growth.
With $ 300 billion in debt, Evergrande says it will start paying investors with properties that resulted in massive sales by other developers and its lenders.
This has affected the yuan which depreciated to a nearly three -week low. The same is true of risky currencies and commodities due to concerns over the Evergrande issue. However, the safe haven currency has received a boost.
The US dollar index, which measures the greenback against major currencies, strengthened before declining at the market opening at 93.117. The yen strengthened 0.2% to trade level of 109.72.
The sterling, which correlated with broader risk sentiment, slipped 0.5% to a four -week low of $ 1.3662.
According to analysts, financial markets started the week with a state of caution especially the Evergrande report and the FOMC meeting.
“Today also saw the Canadian election, where failure to get a clear result will push the CAD to decline further.
Among other major central banks, the Bank of England is not expected to make any policy changes. Investors will continue to focus on the indications that will be presented by the central bank.
