Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Marketmind: A little bit of fear, a little bit of hope

EconomyDec 08, 2021 19:09
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: A man walks past a No Entry traffic sign near the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021. REUTERS/Aly Song/File Photo

A look at the day ahead from Dhara Ranasinghe.

A little bit of hope and fear defines markets on Wednesday, with investors showing no signs yet of winding down for year-end.

Let's start with the fear part, which centres on China's troubled property sector. Shares in the country's biggest developer Evergrande (HK:3333) have hit all-time lows after a missed debt payment deadline put it at risk of becoming China's biggest defaulter.

Note too that trading in shares of embattled smaller peer Kaisa Group Holdings was suspended, after a source with direct knowledge of the matter said Kaisa was unlikely to meet a $400 million offshore debt deadline.

Hopes of a managed debt restructuring at Evergrande are somewhat calming the angst. But even if the fallout so far has been broadly contained, fears linger of how the crisis might impact the world's second-biggest economy.

But as the trading baton passes from Asia to Europe, it's hope that's taking hold.

Already Asian shares have risen to near two-week highs on optimism that the Omicron variant of the coronavirus may be less disruptive than initially feared.

U.S. stock futures are trading higher, European futures are flat. That sentiment boost also lifted the Aussie dollar to its strongest level in a week.

Markets have shown themselves remarkably resilient to political crises, and they appear to be shrugging off President Joe Biden's warning that Russia risked "strong economic and other measures" if it invaded Ukraine.

Possibly news of a two-hour Biden-Putin chat is being seen as a positive.

Finally, Wednesday brings the end of an era in Germany, where Olaf Scholz will take over as Chancellor, bringing an end to Chancellor Angela Merkel's 16-years as head of Europe's biggest economy.

Key developments that should provide more direction to markets on Wednesday:

- Australia joins diplomatic boycott of Beijing Winter Games

- India's holds rates as inflation, Omicron risks loom

- Weibo shares fall 6% below issue price on Hong Kong listing

- Japan downgrades Q3 GDP on deeper hit to consumer spending

- German exports/current account

- ECB speakers: President Christine Lagarde, Vice-President policymakers Luis de Guindos, board member Isabel Schnabel

- Iceland central bank meets

- US JOLTS job openings/10-year Treasury auction

- U.S. earnings. Campbell soup, Gamestop

- European earnings: TUI, Stagecoach, Berkeley

- Bank of Canada meets

Marketmind: A little bit of fear, a little bit of hope

Related Articles

S&P 500 gains near the end of frenetic week
S&P 500 gains near the end of frenetic week By Reuters - Jan 29, 2022

By Stephen Culp NEW YORK (Reuters) - The S&P 500 advanced on Friday, rebounding from selloff to rally and then paring gains near the end of a tumultuous week marked by heightened...

Robinhood climbs back from lowest level since IPO
Robinhood climbs back from lowest level since IPO By Reuters - Jan 29, 2022

By Noor Zainab Hussain and Medha Singh (Reuters) -Shares of Robinhood Markets Inc (NASDAQ:HOOD) reversed course to trade nearly 6% higher on Friday, driven by a broader market...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email