empty
18.11.2021 02:02 PM
US premarket on November 18: inevitable collapse of China Evergrande

The issue of China Evergrande, although it no longer has such a strong impact on the US market as before, but if the developer goes bankrupt, it certainly will not pass without a trace. According to recent reports, China Evergrande is going to attract about $273 million by selling its remaining shares in the movie and video streaming company, HengTen Networks. Experts compared these actions with the attempt to grab at straws before finally hitting the bottom. Amid this background Evergrande shares fell on Thursday by 5.7%, but HengTen securities jumped by almost 25% - apparently investors are happy with the fact that the company will not drag them to the bottom.

China Evergrande

This image is no longer relevant

Evergrande, China's largest dollar-denominated debt issuer among Chinese developers, is on the verge of total default this year.

S&P Global Ratings analysts consider that with China Evergrande so heavily indebted, it is only a matter of time before it defaults. The fact that the company has essentially lost its core business, which could have helped it through tough times, is the main reason for all the problems. Evergrande was China's second-largest developer by sales last year. Like many Chinese developers, the company sold apartments to consumers before construction was completed, helping generate capital for future projects. The S&P report said that despite the company's current ability to sell assets and find ways to make payments on time, Evergrande's massive debt may soon destroy the company. The company has lost the ability to build and sell new homes. It means that its core business model has effectively ceased to exist. This makes it unlikely to pay off existing debts in full without selling the core business and restarting it.

A more serious test for Evergrande, and most likely a default, will be the repayment of debt of $3.5 billion in March and April next year, according to S&P Global Ratings.

Indices are increasing

Meanwhile, US stock index futures are showing gains in morning trading on Thursday, after a slight decline on Wednesday. Dow Jones futures rose by 72 points, or 0.2%. The S&P 500 index futures jumped by 0.3%, and the Nasdaq 100 index futures increased by 0.5%.

The Dow Jones Industrial Average index declined by 211 points yesterday due to a 4.7% drop in Visa stock. The S&P 500 index was down by 0.26%. The Nasdaq Composite index plummeted by about 0.33% despite the fact that most large-cap tech companies closed the trading day with gains. The fact that many people are again seriously talking about another wave of COVID-19 overshadows the positive sentiment of the latest economic reports, which are the driver of American markets growth this week. At least they keep the indices around the all-time highs.

Concerns about COVID-19 have also triggered 10-year bond yields to fall for the first time in 6 days and put downward pressure on commodities. Another Covid outbreak would again stop economic activity, which would have a negative impact on the economy. At this point, it will be hard to predict how the stock market will react and cope with the issue.

The Labor Department is expected to release today data on initial jobless claims in the US for last week. Economists expect initial claims to fall to 260,000 for the week ended November 13.

As for the US premarket:

This image is no longer relevant

Nvidia shares jumped by 7.4% at the premarket after quarterly results exceeded the forecasts.

On the contrary, Cisco Systems fell by 7% due to weaker revenue forecasts and lost profits.

This image is no longer relevant

Boeing shares continued to rise today during the premarket. Good news yesterday about another airplane contract supported the market, and today's rise of 2% came after JP Morgan upgraded the aerospace giant, which said: the aerospace giant has significant upside potential as it has fixed a number of problems that have plagued the company in the past.

Tesla's shares increased by 1.15% during the premarket after news about Elon Musk's intention to sell about 10% of his shares began to fade.

This image is no longer relevant

As for the S&P500 index:

It is gradually returning to its all-time high of $4,718 as investors hope for a more positive end of the year and for the Federal Reserve's policy to remain soft. Support is located at $4,660. If the price breaks through this level it may increase pressure on the trading instrument and lead to a larger drop of the index to $4,609 and $4,551. If the price breaks through the level of $4,718 it is likely to pave the way to $4,750 and $4,775.

Pilih carta masa
5
min
15
min
30
min
1
jam
4
jam
1
hari
1
minggu
Jana pendapatan melalui perubahan kadar mata wang kripto dengan InstaForex.
Muat turun MetaTrader 4 dan buka dagangan pertama anda.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    SERTAI PERADUAN

Artikel yang dicadangkan

Trump Melonggarkan Tekanan terhadap China

Corak gelombang pada carta 24 jam bagi #SPX secara umumnya jelas. Struktur global lima gelombang tersebut bahkan tidak muat pada skrin terminal pada skala terkecil. Secara ringkas, indeks saham

Chin Zhao 10:34 2025-04-24 UTC+2

Kemas Kini Pasaran Saham untuk 21 April: S&P 500 dan NASDAQ Meneruskan Penurunan Di Tengah Desas-desus Baru

Menjelang penutupan sesi biasa sebelum ini, indeks saham AS berakhir dengan prestasi yang bercampur-campur. S&P 500 meningkat sebanyak 0.13%, manakala Nasdaq 100 susut sebanyak 0.13%. Dow Jones perindustrian jatuh sebanyak

Jakub Novak 11:57 2025-04-21 UTC+2

Pasaran AS: Trump mengkritik Pengerusi Fed Powell, tetapi saham kekal stabil

S&P 500 Gambaran Keseluruhan untuk 18 April Pasaran AS: Trump keras mengkritik Pengerusi Fed Powell, tetapi saham masih stabil Indeks utama AS pada hari Khamis: Dow -1.3%, NASDAQ -0.1%, S&P

Jozef Kovach 10:34 2025-04-18 UTC+2

Tinjauan Pasaran Saham untuk 18 April: S&P 500 dan NASDAQ Cuba Untuk Menstabilkan

Pada penutupan sesi dagangan biasa sebelum ini, indeks saham AS berakhir bercampur. S&P 500 meningkat sebanyak 0.13%, manakala Nasdaq 100 jatuh sebanyak 0.13%. Indeks industri Dow Jones kehilangan 1.33%. Indeks

Jakub Novak 08:00 2025-04-18 UTC+2

Pasaran AS: Powell meluahkan kebimbangan mengenai ekonomi. Pasaran jatuh

S&P 500 Laporan untuk 17.04 Pasaran AS: Powell memberi amaran mengenai kelembapan ekonomi. Saham jatuh. Indeks utama AS pada hari Rabu: Dow -1.7%, NASDAQ -3.1%, S&P 500 -2.2%. S&P

Jozef Kovach 11:32 2025-04-17 UTC+2

Kemas kini pasaran saham AS pada 17 April. SP500 dan NASDAQ merosot selepas kenyataan Powell

Selepas sesi biasa sebelumnya, indeks saham AS ditutup dengan penurunan yang ketara. S&P 500 jatuh sebanyak 2.24%, Nasdaq 100 turun sebanyak 3.07%, dan Dow Jones Industrial Average kehilangan 1.87%. Namun

Jakub Novak 11:31 2025-04-17 UTC+2

Pasaran saham AS pada 16 April: S&P 500 dan NASDAQ meneruskan penurunan

Berikutan sesi biasa sebelumnya, indeks saham AS ditutup sedikit lebih rendah. S&P 500 turun sebanyak 0.17%, Nasdaq 100 susut 0.05%, dan Dow Jones Industrial Average jatuh 0.18%. Lebih ketara, penjualan

Jakub Novak 12:22 2025-04-16 UTC+2

Pasaran Amerika Syarikat kekal berdaya tahan meskipun dihimpit ketidaktentuan tarif oleh Trump

S&P 500 Tinjauan pada 16 April Pasaran AS kekal berdaya tahan walaupun menghadapi kekacauan tarif dari Trump Indeks utama AS pada hari Selasa: Dow -0.4%, NASDAQ 0%, S&P 500 -0.2%

Jozef Kovach 11:50 2025-04-16 UTC+2

S&P 500 dan Nasdaq 100: isyarat langsung daripada pendapatan dan geopolitik

Pembukaan pasaran pra-pasaran pada hari Selasa dimulakan dengan ketidakpastian, satu keadaan yang selalunya mendahului ribut daripada ketenangan di Wall Street. Niaga hadapan S&P 500 sedang merosot ke arah 5,420 selepas

Anna Zotova 11:52 2025-04-15 UTC+2

Pasaran AS di Persimpangan: Naik atau Turun?

Gambaran Keseluruhan untuk 15 April Pasaran AS dalam persimpangan: naik atau turun? Indeks utama AS pada hari Isnin: Dow +0.8%, NASDAQ +0.6%, S&P 500 +0.8%, S&P 500: 5,405, julat dagangan

Jozef Kovach 11:52 2025-04-15 UTC+2
Tidak boleh bertanya sekarang?
Tanya soalan anda di Ruangan bersembang.
Panggilan semula Widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.