The Chinese property giant Evergrande's stock plummeted 79% this morning. Evergrande have plunged after it resumed trading following a 17-month suspension. The Hong Kong stock exchange has suspended trading in the company’s shares in March 2022 after it failed to publish its 2021 financial results. Evergrande finally published results for 2021 and 2022 last month. They showed a net loss of more than $113 billion over the two-year period.
When the market opened on Friday, there were negative tensions following the speech by the U.S. Federal Reserve Chairman Jerome Powell Friday the 25th. However, the market rebounded during the day, with the S&P 500 index closing with a 0.7% gain Friday afternoon. Overnight, stocks in both China and Japan also saw a rise, partly due to the Chinese authorities halving the fees on stock trading.
Germany has been slowly regaining the unenviable title of “the sick man of Europe” in recent weeks. The biggest economy of Europe has had a difficult time, as Germany fell into a recession in the first quarter of 2023. Despite this, chief economist Holger Schmieding states that the media's portrayal of Germany as 'the sick man of Europe' is not entirely accurate. He points out that the country in general has achieved high employment levels and is one of the world's largest economies.
Sources: CNBC, Børsen, Euroinvestor, Financial times, Reuters