Some risk-off moods could have been spotted on the markets in the past couple of minutes. Indices in Europe and US equity futures pulled back, gold jumped while other commodities moved lower. According to media reports, Chinese authorities asked local governments to prepare for a downfall of the Evergrande Group and assess possible impact of such a scenario.. Projects started but not finished by Evergrande may be taken over by local developers . However, it was also reported that state-owned companies and local governments were asked to act only in case of an disorderly collapse of Evergrande. Story shows that in spite of assuranced related to honoring interest payment schedule, problems are far from over.
DE30 dropped around 0.5% on the news while US500 trimmed 0.4%. Gold jumped over $5 per ounce while copper plunged over 1%. US strengthening can be spotted on the FX markets.
Source: xStation5
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