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Global Stocks Decline on Thursday 10/21 05:30
Global shares were mostly lower Thursday, after major Chinese property
developer Evergrande said a plan to sell its property management arm to a
smaller rival had fallen through.
TOKYO (AP) -- Global shares were mostly lower Thursday, after major Chinese
property developer Evergrande said a plan to sell its property management arm
to a smaller rival had fallen through.
France's CAC 40 shed 0.4% in early trading to 6,679.78, while Germany's DAX
fell 0.2% to 15,498.69. Britain's FTSE 100 dipped 0.4% to 7,198.09. U.S. shares
were set to drift lower with Dow futures down 0.3% at 35,375.00. S&P 500
futures slipped 0.3% to 4,516.75.
China Evergrande Group's shares tumbled 12.5% while shares in Evergrande
Property Services slipped 8%. In a notice to the Hong Kong exchange Evergrande
said it was having difficulties selling off assets to resolve its cash crunch.
Hopson Development Holdings' shares rose 12.4% after it said was unable to
complete the purchase. Trading of shares in all three companies was suspended
pending a resolution of the transaction.
Hong Kong's Hang Seng index lost 0.5% to 26,017.53, while the Shanghai
Composite index gained 0.2% to 3,594.78.
Some "verbal assurances by government officials and loosening of home loans
for some of its major banks suggest that the authorities are monitoring the
property market risks, hoping to reassure markets of the knock-on impact on the
economy," said Yeap Jun Rong, a market strategist at IG in Singapore.
Japan's benchmark Nikkei 225 slipped 1.9% to finish at 28,708.58, as the
world's third largest economy headed into nationwide elections to select a new
prime minister.
The candidate from Japan's ruling party, Prime Minister Fumio Kishida, has
given mixed messages about his policies, and his "new capitalism" measures,
which include promises to reduce income disparities. That has done little to
reassure markets so far.
Australia's S&P/ASX 200 was little changed, inching up less than 0.1% to
7,415.40. South Korea's Kospi fell 0.2% to 3,007.33.
The market has been gaining ground as investors shift their focus to the
latest round of corporate earnings. Stocks have been choppy for weeks as rising
inflation and lackluster economic data raised concerns about the path ahead for
the economic recovery.
Several large companies are still due to release their earnings this week.
American Airlines, Southwest Airlines and Union Pacific will report on Thursday.
In energy trading, benchmark U.S. crude lost 33 cents to $83.09 a barrel in
electronic trading on the New York Mercantile Exchange. Brent crude, the
international standard, lost 59 cents to $85.23 a barrel.
In currency trading, the U.S. dollar fell to 114.04 Japanese yen from 114.27
yen. The euro slipped to $1.1643 from $1.1651.
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