U.S. Markets Bounce Back from Worst Fall Since May

Equities in the U.S. market followed the bounce back of European indices, giving a rebound after yesterday’s fall.

S&P 500 and NASDAQ 100 trained in the green, showing improvement from this week’s China Evergrande issue. Dip buyers took advantage of the situation.

Stoxx Europe is up by 1%

Dow Jones is up by 0.14%

NASDAQ is up by 0.30%

Evergrande Falls Again After S&P Says Default Is Likely

China’s Evergrande Group fell again in the equity and credit markets on Tuesday, again causing concerns after the Standard & Poors Global Ratings said the property developer is on the brink of default. Evergrande missed loan payment due dates to its banks today.

Shares in Hong Kong fell 7% before gaining back and closing just down 0.4% The stock is down 84% this year. Its dollar bond is down some 75% since late May. American Investor Ray Dalio said that the situation is manageable even though equity investors have lost money.

Crude Sinks With Broader Market on China Crackdown Fears

Oil declined amid growing concerns over the health of China’s economy that have triggered massive losses in equities. 

U.S. crude futures slid 2.3% to settle at the lowest level in more than a week as worries mounted over a possible implosion in the Chinese property sector that could impact the Asian giant’s appetite for crude. A stronger U.S. dollar is also making commodities priced in the currency less attractive. 

Bank Of Spain Raises Growth Forecasts For Upcoming Years

The Bank of Spain said on Tuesday the Bank has raised its forecasts for 2021 and the next two years as the third quarter shows a strong growth similar to the second one. It expects the gross domestic product to grow 2.7% in the third quarter boosted by solid domestic demand and relaxation in Covid restrictions.

DraftKings Strikes  Entain With a $20 Billion Deal

U.S. sports betting company DraftKings has offered a $20 billion(Rs 1,47,530 crores) deal to buy British gambling firm UK-listed Entain. This will help Entain to access LadbrokesPoker and bwin online betting brands. The share of Entain moved 18%.

J&J Offers 94% Effectiveness After Second Covid Vaccine Shot

Johnson & Johnson said on Tuesday a second shot of its Covid-19 vaccine taken after two months can boost the effectiveness to 94% against moderate to severe forms of the disease. A single shot of J&J vaccine offers 70% protection against the Covid-19 disease. 

Uber Shares Jump After Improve Outlook

The shares of Uber rose by more than 12% on Tuesday in NYSE after the company upgraded its third quarter financial outlook. It expects to report $22.8 billion(Rs 1,68,185 crores) to $23.2 billion(Rs 1,71,135 crores) in gross bookings for this quarter.

Iron Ore Prices Continue Fall as China imposes more Regulations

Iron ore, which is a key ingredient in steelmaking, has now fallen 60% from a record above $230/ton in May. The restrictions by China on steel output, alongside a property crackdown and energy supply issues have pushed down iron ore demand in China.