- Stocks and bonds gained in choppy trading as traders took solace in the possibility that Chinese officials will take policy action to address the growing financial and real estate dangers.
- The STOXX 600 rose as positive news out of China helped allay concerns about a market spread. The index had a little weaker opening than usual, after falls in Asia. US market futures rose, with Nasdaq 100 contracts outperforming other products. The stability of Treasury yields was close to their highest point since November.
- Despite central bankers' warnings that they are not in a haste to decrease interest rates, investors sitting on record first-half gains still have to deal with this reality. At the same time as the global stock market valuations are beginning to appear excessively high, China is experiencing a stalling economic recovery and a deepening real estate collapse.
- For the first time, Country Garden wants to extend a maturing bond. If the Chinese developer does to make coupon payments on two dollar bonds within a grace period of 30 days, it runs the possibility of becoming the latest in a long list of defaulters. A task force would be established to look into the risks at Zhongzhi Enterprise, which skipped payments on investment products provided to high-net-worth individuals and businesses, as the Chinese banking regulator revealed.
