Stocks today: European markets rise as Evergrande makes crucial payment
13:00, 22 October 2021
UK and European stocks climbed on Friday, led by mining companies, after Chinese property developer Evergrande made a crucial debt payment to avoid a default that could have rocked global markets.
Evergrande shares, which resumed trading in Asia after a two-week hiatus, got a boost after the company made $83.5 million in interest payments. Overnight in Asia, Hong Kong’s Hang Seng index also rose along with the US S&P 500 index as well.
Why are stocks up today?
Stocks were up today after Evergrande made a crucial payment that significantly boosted market confidence, as a default would have sent shock waves through the Asian financial system and real-estate markets. European equities also gained after the Bank of Ireland stepped up to purchase assets from Belgium-based KBC, in a €5bn deal.
What is your sentiment on UK100?
- UK’s FTSE 100 rose 0.4% Friday afternoon in London, paring its weekly loss to 0.2%
- The Euro Stoxx 50 index advanced 0.8% after the Bank of Ireland announced its deal with KBC
- Brent crude oil was up 0.8% at $84.57 as oil-market volatility persists amidst the ongoing fuel and energy crisis
- The CBOE Volatility index or VIX, a measure of expected fluctuations in US stocks, was little changed near 15, reflecting stable investor sentiment
- The US dollar index slipped 0.1% on the day to $93.63, heading for a second weekly decline
- The US 10-year bond yield index touched a six-month high of 1.71%, before slipping to 1.67%
Top stock gainers: UK and Europe
- In the UK, the best performing sectors were non-energy minerals, retail trade and process industries
- Evraz, J.D. Sports Fashion and Croda International were the top gainers in their respective segments
- In Europe, the best gaining segments were automotive, information technology and semiconductors
- Volkswagen, SAP and Infineon led gains in their respective sectors
Top stock losers: UK and Europe
- On the FTSE 100, the top losers were finance, consumer services and transportation
- London Stock Exchange, Intercontinental Hotels Group and International Consolidated Airlines Group led losses in their respective segments
- On the Euro Stoxx 50, the sectors that were lagging behind were clothing, food and aerospace
- Inditex, Danone and Airbus took a hit in their respective segments
- Japanese inflation increases for the first time in one and a half years.
- JD Sports Fashion gains an 80% stake in competitor Cosmos Sport
- EU warns Poland of further legal restrictions as tensions continue to mount
- Intel stocks fall after below-expectation data centre revenues
- Bank of England speculates inflation to rise above 5%