decline in futures contracts on European equities; Caution on the woes of Evergrande, Fed meeting by


© Reuters.

By Peter Nurse – European stock markets are expected to open lower on Monday, penalized by steep losses in Asia amid concerns over the health of the Chinese real estate giant Evergrande Group (HK 🙂 and ahead of the crucial Federal Reserve meeting of the week.

At 2:00 a.m.ET (06:00 GMT), the contract in Germany was trading down 0.9%, in France was down 2.1% and the UK contract was down 0.8%.

European stocks received a negative transfer from Asia, despite holidays from China, Japan and South Korea, with Hong Kong falling more than 3%, driven by further dumping of the real estate company’s shares Chinese Evergrande.

Investors seem to take a dim view of its business outlook, with a bond interest payment due Thursday and growing concerns that a default on its $ 300 billion in liabilities could crystallize wider risks in the system Chinese financier.

The week also sees a number of central banks holding policy-making meetings, including the, the, and the. But the focus will be on, with the US central bank potentially taking a step closer to cutting at its two-day meeting, starting on Tuesday.

Investors will be looking to see if the Fed deems the U.S. economy strong enough to start cutting back on the massive amount of monetary support it provided during the pandemic, although the consensus is that an actual announcement is delayed until. ‘in November or December Meetings.

Back in Europe, Lufthansa (DE 🙂 will be in the spotlight after the German airline announced on Sunday that it would launch a capital increase that is expected to raise 2.14 billion euros ($ 2.51 billion) to repay part of a state bailout she received during the coronavirus crisis.

Crude prices fell as supply increased in the United States, the world’s largest consumer. The country rose from nine to 512 in the week to September 17, its highest level since April 2020 and double the level of last year around the same time, Baker Hughes said on Friday.

In addition, only 23% of U.S. Gulf of Mexico crude production went offline on Friday, an improvement from 28% on Thursday, more than two weeks after Hurricane Ida hit.

The dollar also hit a high three weeks before the Fed meeting, making commodities denominated in the currency more expensive.

As of 2 a.m. ET, futures were trading down 0.6% to $ 71.36 a barrel, while the contract fell 0.5% to $ 74.98.

Additionally, it fell 0.1% to $ 1,750.35 / oz, as it traded down 0.1% to 1.1717.

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