Evergrande, a property giant in China, is on the brink of collapsing. However, Ed Yardeni, president of Yardeni Research, says it’s unlikely the fallout would be as severe as the Lehman bankruptcy. Analysts say it would be a huge test of China’s financial system and create trouble for investors. Yardeni says continued uncertainty in China could be a benefit for U.S. markets.

 

CNBC/Weizhen Tan
China’s embattled developer Evergrande is on the brink of default. Here’s why it matters

Chinese property giant Evergrande is on the brink of collapse, and analysts warn the potential fallout could have far-reaching implications that spill outside China’s borders.

“Evergrande’s collapse would be the biggest test that China’s financial system has faced in years,” says Mark Williams, chief Asia economist at Capital Economics.

Here’s how bad its problems are, and what’s in store for investors.

Read the full story, here.

 

Julia Horowitz/CNN Business
Fears about China’s Evergrande spread to global markets

Global investors have been paying more and more attention to Evergrande, the sprawling Chinese real estate business on the brink. They’re increasingly worried about what they see.

What’s happening: Stocks in Europe tumbled Monday morning after Hong Kong’s Hang Seng dropped 3.3%, suffering its worst decline in nearly two months. Chinese banks, insurers and other real estate companies were slammed. US futures are also sharply lower.
Shares of Evergrande Group (EGRNF) plummeted 10% in Hong Kong, hitting just 2.28 Hong Kong dollars ($0.29) per share. The stock has shed 84% so far this year.

You can continue reading the full interview, here.

 

Kitco News/Rajan Dhall
The gold weekly chart throws up a good support area

The gold weekly chart highlights a massive level in the coming weeks. This could be important as we head into the next Federal Reserve meeting on Thursday. The price of gold has fallen over the last 2 weeks and once again oscillated around the $1800/oz psychological figure.

The main support level on the chart is the green support zone just below the $1700/oz area. Beyond that, the next support is $1565/oz but on the daily chart, there are some slightly closer. The price has been making lower highs but the support has been holding well so at the moment no lower lows have been made.

Read the full story, here.

 

 

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