Markets look at Vilo to China. Despite having remained closed the country's bags by festive, the delicate situation of its Evergrande real estate giant dragged Hang SENG index of Hong Kong (-3.4%) during the early morning and has infected fears to the main international stock exchanges.
Evergrande is on the verge of collapse and faces a decisive days for its future. The company accumulates a debt close to 300,000 million dollars and has recognized that it will not be able to face its most immediate payment obligations, scheduled for this week.
Since its historical highs reached in October 2017, the stock market assessment of the company has plummeted 92.77%. Only in the last 12 months, the collapse has been more than 88% and only at the o'clock in the morning, more than 10% was left.
Doubts grow at times around the company and all looks point towards Chinese authorities and their possible action in the case. The key is whether they will drop to the giant or if they will intervene in some way so that the financial problems do not end up dragging the rest of the country's real estate sector and, by extension, to the national banking system at its high exposure to its debt.
The banking sector as a whole has been the most damaged of the session, in part by the doubts of investors who are also pending this week of the Fed Meeting and any message that can launch with respect to Tapering and the withdrawal of Stimuli in the USA.
Santander has lost 4.8%, ahead of CaixaBank (-4.1%) and Sabadell (-3.7%). On the opposite side, the Aerial conglomerate IAG has been unmarked with a rise of 10.7% after the announcement of the opening of the United States borders to those vaccinated in the European Union and the United Kingdom as of November.
The rest of the European bags have followed the same negative tonic and have closed with 0.79% falls in London, 1.74% in Paris, 2.31% in Frankfurt and 2.57% in Milan.
In Wall Street, the Dow Jones and the S & P 500 fit drops greater than 2% coinciding with the European closure, while the NASDAQ softened something the setbacks with losses close to 1.5%.Updated Date: 20 September 2021, 21:06