New York equities: Several stress factors are causing the week to start off deeply in the red

lost 2.77 percent to 14,909.48 points.

Stock marketers referred, among other things, to the fear of investors about the ailing Chinese real estate sector in view of the distress of Evergrande. The troubled corporation has to raise fresh money to pay banks, suppliers and bondholders. Investors fear a default. The problems have worsened for Evergrande in recent months, according to observers, as Beijing enforces stricter rules for the country’s highly indebted real estate sector.

In addition, investors fear not only an early departure from loose US monetary policy, but are also faced with risks arising from the uncertainty over US President Joe Biden’s four trillion dollar economic program and the need for one Increase or suspension of the US debt ceiling. Treasury Secretary Janet Yellen said the US government will run out of money to pay its bills in October if the cap is not raised and warned of “economic disaster” if lawmakers fail to take the necessary steps.

The shares of construction machinery manufacturer Caterpillar, which are considered to be very cyclical, recorded in the Dow the highest losses with a minus of five percent. The shares were thus at their lowest level since the beginning of February.

In addition, given the numerous uncertainties, investors avoided stocks from the financial sector. With that, the Goldman Sachs papers sagged and that of JPMorgan by more than four percent each time.

“The fear of the next real estate crisis is currently great,” wrote market expert Christian Henke from trading house IG. The Chinese government does not seem ready to help Evergrande. “The concern now is that more corporations from this sector will be torn into the depths and a new real estate crisis may develop out of this. Memories of the bankruptcy of the US bank Lehman Brothers in 2008 are awakened.” Henke referred to the global financial market crisis resulting from the Lehman debacle.

Pfizer shares were among the other individual stocks and Biontech in investor focus. According to the two partners, the corona vaccine has proven to be well tolerated in children between the ages of five and eleven and evokes a stable immune response. The clinical trial data is to be submitted to the European Medicines Agency (EMA) and the US FDA as soon as possible.

Pfizer’s papers were able to escape the pull of the very weak market as a whole and recently made some gains. The extremely volatile shares in Biontech fell by almost six percent, but were still within the trading range of the last few weeks./la/jha/

Source: dpa-AFX

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