In early trading on Wall Street, the Dow Jones, S&P 500 and Nasdaq lost around 0.2%. Among the most notable moves, US Steel is among the best risers with a 26% gain. The American steelmaker received an offer which he rejected for a $7 billion takeover from Cleveland-Cliffs, the leader in the field in North America. However, this increase remains lower than the 43% premium on Friday night’s closing price offered by Cleveland-Cliffs for the acquisition of US Steel shares. Tesla, meanwhile, loses nearly 3%. The American carmaker has announced a new wave of tariff reductions on its Model Ys in China.
On the Paris Stock Exchange, the Cac 40 fell 0.24% around 4 p.m., in a market that lacked initiative. If the first exchanges testified to certain concerns related to real estate in China, they were swept away by the feeling that the Beijing authorities will do everything in their power to avoid a deep crisis.
Arcelor Mittal is one of the best performances in the flagship Parisian index today, quite contradictory with the drop in iron prices affected by the default of the nearby Chinese promoter Country Garden Holdings. The reason for this increase is to be found across the Atlantic with Cleveland-Cliffs’ takeover bid for its rival US Steel.
Less than two years after the collapse of Evergrande, it is indeed another property developer, Country Garden Holdings, which finds itself in turmoil. The stock plunged 19% on Monday on the Hong Kong Stock Exchange and has now lost almost half its value in just over a week. It is at its historic low. Bondholders did not receive expected coupons by the expected deadline, raising fears that it could be the next industry giant to default. Theoretically, a grace period is granted and payments must be made within 30 days.
« A considerable impact on market sentiment »
« Such a default would impact China’s real estate market even stronger than Evergrande’s collapse, as Country Garden has four times as many projects.wrote Kristy Hung of Bloomberg Intelligence last week. Any debt crisis at Country Garden will have a huge impact on Chinese property market sentiment and could significantly weaken buyer confidence in creditworthy private developers. “. At the end of last year, it had more than 3,000 housing projects in small towns and employed some 70,000 people.
And this is not the only source of concern. Fund manager Zhongzhi Enterprise Group, at the head of around 1 trillion yuan in funding, failed in payments for products issued by some of its subsidiaries, fueling further stress in Asian markets.
Valneva chute de 10%
The program is void of any leading economic figures on Monday. Ditto on the business side but Valneva falls 10% after announcing the postponement by the American health authority, to the end of November against the end of August, the target date to complete the regulatory review of the authorization request. marketing of its chikungunya vaccine candidate, VLA1553.
2023-08-14 14:13:35
#Market #slightly #Paris #York #China #turmoil
