Shares remain stable as markets calm down after Evergrande fall By Reuters

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© Reuters. FILE PHOTO: An investor sits in front of a board displaying stock information at a brokerage office in Beijing, China December 7, 2018. REUTERS / Thomas Peter / File Photo

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By Lewis Krauskopf and Lawrence White

NEW YORK / LONDON (Reuters) – Global stock markets stabilized on Tuesday and oil prices regained ground a day after the sell-off of risky assets, as investors assessed the level of contagion resulting from the distress from developer China Evergrande and were awaiting central bank meetings.

The MSCI gauge of stocks across the world .MIWD00000PUS edged up 0.13%, following Monday’s biggest percentage decline in two months. The main Wall Street indices ended mixed after the solid advance of equities in Europe.

The price movements of bonds and currencies were relatively moderate. Safe-haven assets drew bids on Monday as investors turned risk averse. Gold rose again on Tuesday, a sign of investor caution.

Investors focused on the situation in Evergrande, where lingering fears of default have overshadowed the debt group chairman’s efforts to boost confidence as Beijing showed no sign it would step in to stem the domino effects in the global economy.

There are “some investors ready to come back after a pretty big blow yesterday,” said Chuck Carlson, CEO of Horizon Investment Services in Hammond, Indiana.

“The idea that (Evergrande) might be ‘content’ has probably gained some traction today.”

On Wall Street, the .DJI lost 50.63 points, or 0.15%, to 33,919.84, the .SPX lost 3.54 points, or 0.08%, to 4,354.19 and the. IXIC added 32.50 points, or 0.22%, to 14,746.40.

The Cboe volatility index. fell 1.35 points to 24.36 after hitting a four-month high a day earlier.

The pan-European .STOXX index rose 1%, with .GDAXI up 1.4%.

Canada’s main stock index, the .GSPTSE, rose as the re-election of Prime Minister Justin Trudeau’s Liberals reassured investors that the economic outlook would continue to improve.

Central bank meetings in the United States and around the world were soon to take center stage for markets, with a Federal Reserve meeting set to end on Wednesday as investors look to when it eases its buying program. ‘obligations.

(Graphic: Evergrande Debt Stack, https://graphics.reuters.com/CHINA%20EVERGRANDE-DEBT/jnvweyjjlvw/CHINA-EVERGRANDE.jpg)

In currency trading, the = USD fell 0.012%, the euro was down 0.03% to $ 1.1722. The Japanese yen strengthened 0.18% against the greenback to 109.20 per dollar.

“There’s just a lot of waiting as to what’s going to happen with the Fed, what’s going to happen with Evergrande, and right now, if you’re trying to make a dollar bet, you really want to wait. until you have a better idea of ​​what’s going to happen with Evergrande and what the Chinese government is going to do, ”said Edward Moya, senior market analyst at OANDA in New York City.

The benchmark US10YT = RR fell 5/32 for the last time to drop 1.3243%, down from 1.309% on Monday night.

Oil prices edged up in a sawtooth session as concerns about the outlook for global consumption offset the struggle of large OPEC producers to pump enough supply to meet growing demand.

CLc1 stabilized at 0.4% at $ 70.56 a barrel and Brent at $ 74.36, up 0.6% on the day.

XAU = added 0.5% to $ 1,773.09 per ounce.


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