By Marc Jones
LONDON, Sept 23 (Reuters) – Global markets rebounded on Thursday, with the Federal Reserve confirming its plans to begin reducing its stimulus, after Norway became the first wealthy economy to raise rates since the pandemic. and an Evergrande stock surge ahead of a crucial debt payment.
* European stocks rose 1% in early trading as they sought a third straight day of gains, and the Norwegian krone appreciated 0.7% after the country’s historic rate hike, with a dollar trailing behind. of their peers.
* Policy decisions from the Bank of England and the Turkish central bank are also expected later in the session. The former is moving slowly towards raising rates, while the latter remains under strong political pressure to cut despite double-digit inflation.
* Asia’s nerves also calmed after China injected fresh cash into its financial system and ahead of Evergrande’s $ 83.5 million bond coupon deadline, which could be the start of one of the corporate defaults. biggest in the world.
* Evergrande shares appeared on course to close 17% higher in Hong Kong. At one point they climbed over 30% after its president said Wednesday that it had “settled” an interest payment on one of its onshore bonds from the local market.
* Investors still do not know what will happen with the payment of one of their bonds in the international market. Technically, you have a 30-day grace period to make the payment.
* Along with the rise of Evergrande, the Chinese preferred stock index CSI300 gained 0.7%, Australia’s benchmark rose 1%, and South Korea’s Kospi fell 0.6%. Japan’s equity markets were closed for a local holiday.
* On Wednesday, Fed Chairman Jerome Powell also downplayed Evergrande’s global impact, arguing that its relevance was more for the Chinese economy.
* In another key event for the markets, the Fed said the central bank would likely start reducing its monthly bond purchases in November, noting that interest rate hikes could follow faster than expected.
* The dollar index plunged in European trading after it climbed to a one-month high of 93.526 following Powell’s remarks.
* US crude was up 0.1% at $ 72.33 a barrel, while Brent was up 0.2% at $ 76.23 a barrel. Spot gold was down 0.3% at $ 1,763.32 an ounce.
(Additional reporting by Alun John in Hong Kong; Edited in Spanish by Janisse Huambachano)