Morning wrap (27.09.2021)

• Stocks in Asia launched a new week in mixed moods. S&P/ASX 200 and Kospi gained, Nikkei traded flat and indices from China traded mixed

• DAX futures point to a slightly higher opening of the European cash session today

• Uncertainty related to Evergrande remains after the Chinese developer failed to make a $83.5 million coupon payment last week. Shares of Evergrande's electric vehicle unit traded 20% lower after unit said it dropped plans for Shanghai listing

• According to Japanese media, Japan may lift all states of emergency this week

• SPD won German elections with a 25.7% support. CDU/CSU came in second with 24.1% support. Greens and Free Democrats won 14.8% and 11.5% seats and are likely to be kingmakers in coalition talks

• While German coalition talks may take weeks to conclude, Olaf Scholz, leader of SPD, is most likely to be the next German Chancellor

• Goldman Sachs expects Brent price to hit $90 per barrel by year-end, up from previous forecast of $80

• Precious metals are traded higher, along with oil and agricultural goods. Industrial metals traded lower

• AUD and CAD are the best performing major currencies while CHF and EUR lag the most

SPD won the German elections but a three-party coalition will be needed to rule. Source: Guardian