Daily summary: Global stocks subdued by Evergrande woes

• European indices ended session in the red
• China intensifies cryptocurrency crackdown
• Evergrande misses payment deadline
• Brent is testing this year's highs

European indices finished today's session lower, snapping a three-day rally as investors remain concerned as Evergrande missed a coupon payment on its offshore bonds yesterday. The company is now in a 30-day grace period during which it can repay overdue interest without being in default. Regarding spillover risks, ECB President Christine Lagarde said Europe had limited direct exposure. On the data front, supply shortages caused Germany’s IFO business climate to drop to 98.8 in September, below market forecasts of 98.9. This is the third consecutive month of decline. Over the weekend, German voters will head to the polls to elect the nation’s new Chancellor. DAX fell 0.7%, CAC40 lost 0.95% and FTSE100 finished 0.38% lower.

US indices are trading slightly lower, following a move from the PBoC to ban cryptocurrencies and mounting concerns over Evergrande. PBOC announced today that all cryptocurrency-related activities are illegal vowing and banned crypto mining nationwide. This move weighed on the crypto-related stocks Coinbase and Robinhood. On the corporate front, Nike shares plunged over 7% after the company lowered its sales outlook due to supply chain issues. The yield on the benchmark 10-year Treasury note continued to rise to hit 1.46% on Friday, the highest since July 5th.

On the commodities markets, WTI crude rose more than 1.20% and is trading above $74.00 a barrel, while Brent is trading nearly 1.30% higher around $77.20 a barrel thanks to higher fuel demand and declining US oil stocks. A production disruption in the US Gulf Coast following Hurricane Ida and other storms has led to a sharp decline in US and global inventory levels. An EIA report showed that US crude oil stocks fell by 3.5 million barrels last week to 414 million, their lowest level since October 2018. Elsewhere gold rose 0.40% to $ 1,750.00 / oz, while silver is trading 1.0 % lower, above $ 22.35 / oz. Cryptocurrencies moved lower following Chinese central bank actions however managed to erase some losses in the afternoon. Bitcoin trades slightly below $42,000 while Ethereum trades below $2,900 mark.

Brent (OIL) price rose sharply during today’s session and is approaching major resistance at $78.00 per barrel where July high is located. This level also coincides with the upper limit of the ascending channel. On the other hand, if sellers manage to regain control, then support at $75.00 may be at risk. Source: xStation5