(News Bulletin 247) – Wall Street retreated on Friday, weighed down by the awakening of uncertainties surrounding the fate of the Chinese real estate giant Evergrande, which encourages investors to be cautious.
At the end of the morning, the Dow Jones fell 0.1% to 34,423 points, while the Nasdaq Composite fell 0.6% to 13,234.8 points.
According to several sources, Evergrande is preparing to file for Chapter 15 protection, the American law on international bankruptcy, casting doubt on the future of the group.
Questions about the health of Evergrande again prompt investors to be cautious after a week marked by a return of risk aversion.
This information sent stock markets tumbling, which had already suffered from fears surrounding the health of the Chinese economy and the evolution of the Fed’s monetary policy.
Over the week as a whole, the Dow has so far lost 2.4% and the Nasdaq 3.2%, the latter marking a third consecutive week of decline.
A sign of the nervousness of the market, the CBOE volatility index remains stretched at nearly 18 points, not far from the threshold of 20 points indicating renewed stress in the markets.
The yield on ten-year US Treasuries fell back towards 3.23% and halted the upward movement triggered by the Federal Reserve’s minutes on Wednesday.
The dollar is not benefiting from the renewed investor risk aversion, with the euro climbing back to around 1.0875.
The oil market dropped 0.1% to 80.3 dollars and is heading for the moment towards a decline over the week, weakened by the more worrying outlook for the Chinese economy.
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