World Shares Tumble as China Evergrande Crisis Sparks Fears

On Tuesday, world shares tumbled as the China Evergrande crisis sparked fears of its spillover effect on the global economy.

Accordingly, the MSCI All Country World Index edged down 1.63% or 11.90 points to $718.09 per share.

The Dow Jones Industrial Average index plunged 1.78% or 14.41 points to $3,970.47 per share on Wall Street. 

Consequently, the Nasdaq Composite index declined 2.19% or 330.06 points to $14,713.90 per share. 

Likewise, the S&P 500 index lost 1.70% or 75.26 points to $4,357.73 per share. 

Accordingly, European stocks sank as contagion fears hiked.

On the Paris Stock Exchange, the CAC 40 index shed 1.74% or 114.38 points to $6,455.81 per share. 

On the London Stock Exchange, the FTSE All-Share index dwindled by 0.91% or 36.43 points to $3,986.90 per share. 

Then, the FTSE 100 index curtailed by 0.86% or 59.73 points to $6,903.91 per share. 

On the Frankfurt Stock Exchange, the MDAX Performance index weakened 1.40% or 493.40 points to $34,799.59 per share.

Likewise, the DAX index slumped 2.31% or 358.11 points to $15,132.06 per share. 

Additionally, the Asia-Pacific shares posted losses on Tuesday trading. 

Japan’s Nikkei 225 index plummeted 2.03% or 619.21 points to $29,880.84 per share.

Also, the broader TOPIX index fell 1.63% or 4.25 points to $2,065.92 per share. 

In Hong Kong, the Hang Seng index pared 0.10% or 23.61 points to $24,075.53 per share. 

Elsewhere, New Zealand’s S&P/NZX 50 index slashed 0.01% or 1.64 points to $13,176.94 per share. 

Evergrande Slumps as It Rattles World Shares

Furthermore, Evergrande Group, China’s second-largest real estate developer, slumped as it rattled world shares.

Subsequently, China Evergrande inched down 3.51% or 0.01 points to $0.28 per share.

Concerns about a possible default increased as the real estate developer scrambled to pay almost $300.00 billion in debt. 

Moreover, the highly indebted developer reassured investors that the company would pull through, but it failed to lift their confidence.

Also, the crisis weighed on the growing implications for China’s economy on Beijing’s prolonged tech crackdown.

Accordingly, some analysts expected the Chinese government to issue a bailout to prevent Evergrande’s woes from rippling in its financial system. 

On top of the fears, market participants also looked forward to the critical meeting of the Federal Reserve this week. 

Consequently, traders forecasted that the Fed would ease its current stimulus to support US economic recovery. 

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