Chinese influence on global markets

Chinese stocks continue to fall. The decline was driven by the court order for Evergrande, which has raised concerns about the country’s real estate sector. U.S. stock indices were supported on Monday by the Treasury’s downward revision of its net borrowing forecast. Despite interventions by policymakers in China, stock markets continued to fall on Tuesday morning. The MSCI China Index fell more than 2 percent in the morning session. The Hang Seng Chinese Enterprises Index fell as much as 2.7 percent on Tuesday, its worst daily performance in Asia. The mainland index, the CSI 300, also lost more than 1 percent. The decline was driven by the court order for Evergrande, which has raised concerns about the country’s real estate sector. The consensus is that Chinese authorities need to take more steps to support markets, according to Willer Chen, analyst at Forsyth Barr Asia. U.S. stock indices were supported on Monday by the Treasury’s downward revision of its net borrowing forecast. The S&P 500 rose 0.8 percent, exceeding 4,900 points, reaching a new record level. The same index is moving sideways in the futures market in the morning hours. The Bloomberg Dollar Index is moving sideways at 1.235. The Dollar/TL was traded at 30.3515 in the morning hours. Brent oil is finding buyers at $82.6, up 0.3 percent. The CBRT announced changes to required reserves to support the transition to TL deposits. The US Treasury revised its net borrowing forecast downward for January-March, and bonds rallied. The Biden administration wants to avoid the risk of a large-scale war while evaluating the response to Iran. According to Kolanovic, the balance sheets of giant technology companies will determine whether the valuations will be permanent.