Opening Bell: Evergrande, Inflation Drive Global Market Slide; Bitcoin Higher

 | Oct 21, 2021 09:07AM ET

  • Evergrande in a tailspin after deal collapses, weighing on markets
  • Dollar rallies despite falling yields
  • Bitcoin retains record highs
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Stocks and US futures on the Dow, S&P, NASDAQ and Russell 2000 sold off on Thursday after Chinese real estate developer, Evergrande announced that the sale of a significant stake in its property management group—in order to shore up the company's teetering financial stability—had collapsed, adding to traders' concerns about markets and rising global inflation.

Treasury yields fell but the dollar advanced.

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All four US contracts were trading in the red this morning, with the Russell most deeply in negative territory.

The STOXX 600 Index slipped from its highest levels in six weeks, following an the earlier Asian selloff—which saw the Hang Seng decline 0.5%—on news of the collapse of a $2.6 billion sale of the property management arm of the beleaguered Evergrande Group (HK:3333). The shares slumped 12.5%, on the announcement while Evergrande Property Services Group (HK:6666) slid 8%.

Miners, automakers and industrial stocks pulled down the pan-European benchmark—sectors sensitive to the economic recovery—as investors worry about future corporate earnings in an economy battling the highest inflation in years.

Yesterday's uneven US session saw the S&P 500 inch toward its record high, but the NASDAQ 100 retreated, imbuing markets with a cautious air.

Despite a slide in 10-year Treasury yields, the dollar gained.