Sat, 16 Oct 2021

NEW YORK, New York - U.S. stocks tumbled on Monday amidst concerns about the global economy's ability to bounce back from a near-collapse due to the Covid-19 pandemic.

The imminent demise of the world's most indebted property developer, the Hong Kong-listed China Evergrande also weighed on markets. Evergrande has $305 billion (USD) maturing in the next few days and weeks. The Hang Seng in Hong Kong dived more than 800 points on Tuesday as the likely collapse impacted the broader market.

Not everyone however blames Evergrande.

"The Evergrande situation, although big and impactful, isn't the reason for this selloff," Jamie Cox, managing partner for Harris Financial Group in Richmond, Virginia told Thomson Reuters Monday.

"Rather, stalemates in Congress on the debt ceiling, worries on policy changes or mistakes in monetary policy, and a litany of proposed tax increases have dampened the mood for investors. When this occurs, corrections happen."

At the close on Monday, the Nasdaq Com opposite had lost 330.06 points or 2.19 percent, to finish at 14,713.90.

The Dow Jones industrials unloaded 614.41 points or 1.78 percent to 33,970.47.

The Standard and Poor's 500 slumped 75.26 points or 1.70 percent to 4,357.73.

On foreign exchange markets, the U.S. dollar jumped sharply, carrying other safe-haven currencies the Japanese yen and the Swiss franc. The yen rose to 109.40, while the franc firmed to 0.9276. The euro however dropped to 1.1728 approaching the New York close Monday. The British pound was unwanted at 1.3663.

The Canadian dollar fell to 1.2816. The Australian dollar weakened to 0.7256. The New Zealand dollar was friendless at 0.7032.

In Europe, the biggest loser was the Dax in Germany which sank 2.31 percent. The CAC 40 index in Paris, France declined 1.74 percent. In London, the FTSE 100 was off 0.81 percent.

In Asia, Chinese, South Korean, and Japanese stock markets were closed, according to a Business Sun report.

Hong Kong's Hang Seng shed 821.62 points or 3.30 percent, to close at 24,099.14.

The Australian All Ordinaries plummeted 143.20 points or 1.86 percent to 7,559.20.

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