Below is the Mounting fears over prospects of debt default by Chinese property developer Evergrande Group By Mr. Yash Sawant, Research Associate, Angel Broking Ltd.
Mounting fears over prospects of debt default by Chinese property developer Evergrande Group sent a panic wave across financial markets. Investors rushed towards the safe haven Dollar following worries over probable impact on the global economy amid the wide spread of the Delta Variant.
Appreciating US Dollar made the Dollar priced industrial metals more expensive for other currency holders.
Debt fears come inline with the slow expansion in China’s economy following the recent outbreaks of the virus and disrupted supply which triggered the fall in industrial metal prices.
Markets are expected to remain cautious ahead of the outcome of the two-day Federal Open Market Committee meet which begins today's i.e 21st September’21. Any Hawkish comments by the US FED chair Jerome Powell might further strengthen the Dollar.
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