Asia in strong red after Wall Street fell last night as inflation worries overpowered the good quarters. Hang Seng is leading losses, down more than 1.3%, weighed down by a plunge in Evergrande shares (-5%) as the real estate giant sold its entire stake in the HengTen streaming platform. Network for 2.13 billion Hong Kong dollars (over 241 million euros).
Meanwhile, at 7:20 am Italian time, the Nikkei loses 0.23%, Shanghai 0.3%, gold travels sideways at 1,868 dollars per ounce, oil falls again, -0.83% at 77.73 dollars a barrel, with currencies in equilibrium with respect to the close of Wall Street. The euro changes hands at 1.1320, the yen at 114.2, the pound at 1.3489. The US 10-year T bond yields 1.589%, while the US futures are positive (Nasdaq, + 0.2%).
Evergrande has entered into an agreement with Allied Resources Investment Holdings, owned by investor Li Shao Yu, to sell 1.66 billion shares of HengTen at $ 1.28 local per share, with a 24% discount on yesterday’s closing price. . The debt-laden brick giant said it would lose HK $ 8.5 billion from its 18% sale in HengTen (where Chinese gaming and social media giant Tencent) holds about 20%).
20% of the consideration must be paid within five business days of the date of the agreement, with the remainder of the payment completed within two months. It is written in a document filed with the Hong Kong Stock Exchange, according to Reuters. Investors remain on their toes as they wait to see if Evergrande, which failed to pay an 82.5 million coupon on November 6, triggering the 30-day grace period, can meet its obligations by December 6, under penalty of penalty. default.
The crisis in China’s housing market is making it difficult for local governments to cut about $ 6 trillion in hidden debt even as the government shows more determination to crack down on the problem, Bloomberg writes. Now Beijing, Shanghai and Guangdong province are carrying out some trials to eliminate off-balance-sheet loans that local authorities use to raise money for spending. The ongoing crackdown on the brick “is slowing the Chinese economy to its 1990 lows and the Evergrande crash may be more difficult for China to absorb than Covid,” Bloomberg argues.
Today, WTI crude oil futures briefly fell below $ 77 a barrel, bringing the last two days’ losses to around 5%, as the US is asking other major crude consumers such as China, India, Japan and Korea. South to consider a coordinated release of reserves on the market to lower prices. China has confirmed that it is working on a similar oil injection to previous times (it had acted alone), but has declined to comment on the US request.
Japanese and South Korean officials meanwhile confirmed that they had received such a request, but explained that they could not use the release of the reserves to lower prices. Meanwhile, OPEC and the International Energy Agency continued to warn of a potential oil surplus in the coming months and called for caution.
In after-hour trading, Nvidia gained 5% after beating market estimates, while Cisco lost 6% due to weaker guidance and below expectations. (All rights reserved)
