A sea of red flashing prices across Asian and European markets followed an equally depressing showing on Wall Street last night.
The energy crisis is showing no signs of abating, which means considerable cost pressures on companies, and consumers facing the prospect of having less money in their pocket to spend on products and services, thereby having a negative effect on the economy.
“China’s regulatory interference is back to haunt markets once again, with Beijing casting its eye on the financial sector to stamp out corruption,” Russ Mould, investment director at AJ Bell, said.
“The Evergrande saga also continues to rumble on, with reports that some bondholders didn’t receive interest payments from the heavily indebted property group due on Monday.
“These factors have knocked investor confidence once again, leading to a 1.7% drop in the Hang Seng index in Hong Kong, with financials, technology and healthcare among the worst performing sectors.
“The main markets in Europe mostly fell by up to 1% including a 0.7% decline in the FTSE 100, where financials, miners and real estate were among the sectors to weigh on performance. Asia-focused Prudential fell 2.1% while economically-sensitive miners including Anglo American and Rio Tinto fell by around 2%.”