The European stock exchanges breathed a sigh of relief at the opening (+ 0.25% the Dax, + 0.52% the Cac40, + 0.06% the Ftse100 and + 0.26% at 26,595 points the Ftse Mib) like the Asian ones in the wake of the news that the Chinese real estate giant at risk of collapse (262 billion euros in debt), Evergrande, has repaid the coupon of the bonds that matured about a month ago, on the eve of the expiry of the grace period beyond which it should have declare bankruptcy, according to Chinese state media.
In fact, according to the Chinese Securities Times, Evergrande has transferred to Citibank the figure of 83.5 million dollars of interest on the bond in March 2022, necessary to honor the payment to investors. Consequently, the stock rebounded by almost 8% in Hong Kong. The real estate development group failed to pay the coupons on the bonds last September 23rd.
By tomorrow he will have to make payments to investors, explains the Securities Times, a newspaper that is part of the galaxy of the People’s Daily, the Chinese Communist Party newspaper. Evergrande’s focus now shifts to paying an additional $ 573 million in interest for bonds maturing by the end of the year, while $ 7.7 billion in bonds accrue in 2022.
Evergrande’s default averted, China nevertheless remains in the foreground as the United States is ready to defend Taiwan in the event of an attack by Beijing, as US president Joe Biden said: “Yes, we are committed to doing so. “. A White House official later explained that the president “there is no change in our policy”.
Wall Street futures are trading slightly lower (-0.06% the Dow Jones and -0.13% the S & P500) following the collapse of Snap and Intel on the post-accounts Nasdaq. Meanwhile, the 10-year Treasury yield fell to 1.669%, after having reached 1.70% overnight. While the 10-year BTP yield rises to 0.957% with the BTP / Bund spread stable at 105 basis points waiting for S&P to pronounce on Italy, an intervention that should not reserve any surprises, according to Reuters which recalls that the last April the rating agency had left the country’s sovereign rating at BBB unchanged with a stable outlook, arguing that the acceleration in the vaccination campaign and increased fiscal stimulus would facilitate a solid economic recovery in the second half of the year.
Also tonight, reviews of the sovereign ratings of Greece, UK and Turkey by S&P, Austria, Finland, Holland and Romania by Fitch and Cyprus by Dbrs are scheduled. With markets closed, Reuters also reported, the Treasury will announce the amount of the half-yearly Bot at auction next Wednesday. The day before, Tuesday 26th, via Nazionale will make available to investors up to 2.25 billion euros of short BTPs and up to 750 million BTPs. Yesterday, however, Reuters recalled, the Treasury announced that 70% of the BTP Green 2045, reopened for 5 billion with orders 11 times higher, was bought by foreigners, with about 350 investors participating in the operation. (All rights reserved)