Evergrande Group stocks plummeted more than 10%, after falling as much as 17% earlier
Wall Street stocks finished lower on Friday as investors remained cautious ahead of a Federal Reserve meeting, with continued virus uncertainty adding to a more negative tone in the markets. As such, the Dow Jones Industrial Average lost 0.5%, the S&P 500 and the Nasdaq Composite lost 0.9% each.
Today in Asia, equities extended losses, with many markets in Asia being closed for holidays. The Hang Seng index in Hong Kong dropped over 3% amid the ongoing sell-off in China Evergrande Group. The company’s stocks plummeted more than 10%, after falling as much as 17% earlier. The S&P/ASX 200 in Australia fell 2.1% on the day.
European stocks opened lower as well, with the Stoxx Europe 600 falling 1.64% in early trade on Monday amid the looming U.S. Federal Reserve’s highly anticipated September meeting and persistent fears surrounding embattled developer China Evergrande Group.
In currencies, the dollar retains a bullish tone at the beginning of the week, staging a broad-based rally ahead of the Fed’s latest meeting this week. EURUSD has been losing ground for the third day in a row on Monday, barely holding above the 1.1700 figure during the European hours. A break below this level would pave the way to fresh lows around 1.1660 seen one month ago.
Meanwhile, oil prices slipped to the $74 figure on Monday, also pressured by a stronger dollar along with risk aversion across the financial markets. A rise in the US rig count and recovery in US Gulf of Mexico output adding to the selling pressure surrounding Brent crude as well.