MILANO – The markets are starting to go into fibrillation for the meeting of the Federal Reseve, which according to expectations on Wednesday will give indications on how it intends to start the withdrawal of stimuli (the so-called tapering, the gradual closing of the taps): the strengthening of the dollar and the increase in the yields of Treasuries, the American ten-year bonds, also go in this direction. Meanwhile, the situation of the group continues to represent a big headache Evergrande, which is generating wildfire problems throughout the Asian real estate sector. With the Chinese and Japan markets closed for holidays, it is above all in Hong Kong that the greatest repercussions have been felt.
For the brick giant there is the now full-blown default prospect and the shares today lost another 18%, slipping to the new all-time lows of Hk 2.08 dollars, with a loss in value by now at 87% in the last year. China’s second largest real estate developer is grappling with monstrous $ 305 billion debt: creditor banks learned from the Chinese government last week that the company will miss its loan obligations. The world‘s most indebted real estate developer will face the burden of a series of offshore bond coupons, starting Thursday, with coupons for September of 129 million. The central government’s instruction to the company’s major lenders is to extend interest payments or renew loans, while most analysts are of the opinion that a direct government bailout is unlikely.
Wall Street is back from a second negative week in a row, confirming that September is historically a difficult month, which could be archived as the worst month for the S&P 500 since October 2020. Friday, John Marshall, Head of Derivatives Research at Goldman Sachs, wrote in a note that he expected “an increase in volatility over the next month, due to the seasonal increase in investor uncertainty, the continuing uncertainty linked to the virus and the significant catalysts represented by monetary and fiscal policies”. The raw materials index (Crb index), at its highest since 2015, is also worrying, which translates into an increase in inflation. The Dow Jone thus lost 0.5%, for a weekly balance of -0.1%. The S&P 500 lost nearly 0.6% in the eighth, the Nasdaq 0.5%.
Precisely in terms of inflation and raw materials, producer prices in Germany in August they recorded an increase of 1.5% on a monthly basis while, on a trend basis, the increase was 12%. This was announced by the Federal Statistical Office Destatis, according to which the increase is largely attributable to the trend in energy prices which, in the month, marked a jump of 3.3% on the previous month and 24% compared to in the same month of 2020.
Among the currencies, as mentioned theeuro opens down below $ 1.18. The single currency changes hands for 1.1717 dollars and 128.73 yen. Dollar / yen at 109.87. The price of the Petroleum is down this morning on the markets, thanks to the strengthening of the dollar: contracts on WTI for delivery in October are losing 0.65% to 71.50 dollars a barrel, while those on Brent in November are down to 74.93 (-0.54%).
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