- China Evergrande default concerns weigh on market sentiment
- Equity sell-off accelerates
- Bitcoin tumbles as regulatory concerns intensify
European indices finished today's session sharply lower with DAX losing more than 2% to15,125, the lowest since May 19th as investors are bracing for key central bank meetings this week including those from the US Federal Reserve and Bank of England. European stocks were dragged down by potential default of the China's second biggest developer Evergrande and concerns about the company's ability to repay a small portion of its $305 billion debt due this Thursday. On the data front, German producer prices showed a bigger-than-expected increase last month. Negative sentiment prevails also on Wall Street where all three major indices fell more than 2%. S&P 500 index (US500) reached the lowest levels in 2 months.
In the face of risk-off sentiment, declines are also visible today in commodity markets. Both crude oil and metals are losing heavily. The dollar appreciated against most major currencies except the Japanese yen. The sell-off is also affecting the cryptocurrency market, where Bitcoin at one point fell below $ 43,000 level amid fresh regulatory concerns. However, slight increases can be seen on the gold market which is still considered by many investors as a safe haven asset.
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US500 fell today to its lowest level in 2 months. The index plunged below the 50-session moving average that has acted as an important support in the past few months. A 100-session moving average is currently being tested. The last time such a situation took place in October 2020. Source: xStation5
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