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Stocks today: European markets rise as Evergrande makes crucial payment

By Indrabati Lahiri

13:00, 22 October 2021

Image of stocks chart
Stocks rising – Photo: Shutterstock

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.

Image of VIX chartVIX chart – Credit: TradingView

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.

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Market highlights

  • 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

Market sentiment

  • 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

Top news

  • 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%

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