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European Shares Seen Up As Evergrande Makes Payment

stockmarkets jan04 22oct21 lt

European stocks may open higher on Friday after China's Securities Times reported without providing details that Evergrande has sent an $83.5 million interest payment to bondholders.

The news is a positive surprise considering that a default had been widely expected.

Asian markets were broadly higher, though the upside remained limited as cyclical stocks dragged amid worries that central bankers will need to tighten monetary policy to tackle persistent inflation.

Fed Chair Jerome Powell speaks later today in a panel discussion, with traders awaiting more clarity on the Fed's plans for the withdrawal of stimulus.

The U.S. central bank may start tapering its bond-buying program as soon as next month, with rate hikes expected late next year.

Gold edged higher and was poised for a second weekly gain as a softer dollar offset higher U.S. bond yields ahead of the release of flash Eurozone/US PMI prints.

Oil extended overnight losses as easing coal and gas prices curbed the fuel-switching that had increased demand for oil products.

Overnight, U.S. stocks rose broadly on economic optimism after data showed initial jobless claims fell to a 19-month low last week and existing home sales rebounded by much more than expected in September.

The tech-heavy Nasdaq Composite gained 0.6 percent and the S&P 500 rose 0.3 percent to extend gains for the seventh straight session and reach a new record close, while the Dow finished marginally lower.

Intel shares sank after the closing bell as the company reported third-quarter sales that missed expectations.

Snap failed to meet revenue expectations for its third quarter while Mattel reported results that beat expectations on both the top and bottom lines.

Whirlpool's third quarter earnings beat analysts' forecasts but revenue fell short of expectations.

American Express and Honeywell are among the companies due to report their quarterly results before the start of trading later in the day.

European markets ended in the red on Thursday as investors digested mixed earnings updates and reacted to news about the collapse of a $2.6 billion asset sale at heavily indebted developer China Evergrande Group.

The pan European Stoxx 600 slipped 0.1 percent. The German DAX and France's CAC 40 index both dropped around 0.3 percent while the U.K.'s FTSE 100 shed half a percent.

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