Market Sentiment Webinar: Will Wall Street Rally After Evergrande Setback?
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Market sentiment analysis:
- Trader confidence has been hit by fears that China’s Evergrande could be on the brink of default, with Wall Street stocks hit hardest.
- However, it is not yet clear whether there will be more selling to come or whether dip buyers will take stock markets up to new record highs.
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Trader confidence hit by Evergrande fears
Trader confidence, particularly on Wall Street, has been damaged by fears that China’s Evergrande property company could be on the brink of default and that more property companies could be targeted by China’s regulators – potentially harming the Chinese economy.
S&P 500 Price Chart, Daily Timeframe (January 4 – September 21, 2021)
Chart by IG (You can click on it for a larger image)
Elsewhere, the US Dollar has benefited from safe-haven buying but other riskier assets have suffered alongside stocks.
In this webinar, I looked at the trends in the major currency, commodity and stock markets, at the forward-looking data on the economic calendar this week, at the IG Client Sentiment page on the DailyFX website, and at the IG Client Sentiment reports that accompany it.
--- Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.