Global equities and US futures rose on Wednesday after Chinese developer Evergrande announced plans to pay interest on its debt which is due on Thursday.
Shares rose in Paris, Frankfurt and Shanghai but fell in Tokyo.
Markets have been rocked by Evergrande’s struggle to cope with debt payments and uncertainty over what the Chinese government could do to limit the impact of a possible default.
Evergrande, one of China’s largest private sector conglomerates, said it will make a payment on Thursday on a 4 billion yuan ($ 620 million) bond denominated in Chinese yuan.
A statement from the company did not say whether this involved a change in payment. The bond has an interest rate of 5.8%, which would make the normal amount owed at 232 million yuan ($ 36 million) for one year.
Evergrande gave no information on any future payments, including a US dollar-denominated bond in March.
âAlthough banks have yet to declare Evergrande in technical default, Beijing’s silence adds to market nervousness,â Mizuho Bank’s Venkateswaran Lavanya said in a comment.
The German DAX gained 0.6% to 15,444.30 and the CAC 40 in Paris gained 1.2% to 6,630.19. The FTSE 100 in London jumped 0.9% to 7,042.98. US futures were also higher, with the Dow Industrials contract rising 0.6%. The future of the S&P 500 gained 0.4%.
The 10-year Treasury yield remained stable at 1.33%, against 1.32% on Tuesday night.
In Asia, Tokyo fell, but other major regional benchmarks were mostly higher, reducing initial losses.
The Bank of Japan kept its ultra-support monetary policy unchanged, as expected.
The Tokyo Nikkei 225 Index lost 0.7% to 29,639.40, while the Shanghai Composite Index gained 0.4% to 3,628.49. The Australian S & P / ASX 200 gained 0.3% to 7,296.90. Shares fell 2% in Taiwan and also fell in Singapore. But benchmarks have increased in India, Indonesia and Malaysia.
The markets in South Korea and Hong Kong were closed for holidays.
The Federal Reserve is expected to send out its clearest signal yet this week that it will begin to curb its ultra-low interest rate policies later this year, the first step towards unwinding the extraordinary support it has provided. to the economy since the pandemic hit 18 months ago.
Wednesday’s Fed policy meeting could lay the groundwork for a November pullback announcement.
On Tuesday, nerves appeared to stabilize after a massive sell-off on Monday.
The S&P 500 was down 0.1% and the Dow Jones Industrial Average was down 0.1% as well.
The Nasdaq composite rose 0.2% and small business stocks also managed gains. The Russell 2000 Index rose 0.2%.
In other exchanges, the US benchmark crude oil gained $ 1.04 to $ 71.53 per barrel in electronic trading on the New York Mercantile Exchange. He won 35 cents to $ 70.49 on Tuesday.
Brent crude oil, the standard for international prices, added 98 cents to $ 75.34 a barrel.
The US dollar climbed to 109.42 Japanese yen from 109.23 yen on Tuesday night. The euro strengthened to $ 1.1732 from $ 1.1726.