- September 24, 2021
- Posted by: Mainframe Consulting
- Category: Business
Markets flashed red across Europe and Asia on Friday as uncertainties remained over the future of troubled Chinese property developer Evergrande, with no news on whether it had made its latest bond interest payment.
Russ Mould, investment director at AJ Bell said: “Persistent and rising inflation would suggest that central banks have to act soon to get the situation under control which means interest rate hikes sooner rather than later. However, there is a bleak winter ahead given pressure on energy prices, supply chain problems and a sharp hike in the cost of living.
“All these factors threaten economic growth, so central banks have a fine line to tread – raise rates too quickly and the economy could falter, but don’t act and risk inflation racing away.
“The FTSE 100 fell 0.3% to 7,058 with healthcare being the only sector in fashion, thanks to positive news on a cancer drug from AstraZeneca. That rounds off a good week for the pharma giant which also pleased with very promising trial results on a breast cancer treatment.
“Miners were weak as investors started worrying about the potential fall-out should Evergrande go bust. Commodities demand could tumble if the Chinese property market experiences a crash.”
Published at Fri, 24 Sep 2021 10:31:55 +0000