News of a possible default by Chinese real estate and construction giant Evergrande – which currently has the world’s largest debt-asset, over $300 billion – has rocked global markets today (20) and created even more capital flight for the company.
Shares of Evergrande, which is responsible for about 3.8 million jobs in several countries, fell 10.24% after announcing that interest on the company’s debts would not be paid to creditors, and ended the day at $2.28 – a cumulative drop of 84.7%. since the beginning of the year.
On Wall Street, leading tech companies saw their stock values plummet. Apple, Google (Alphabet), Tesla and Amazon numbers were the main negative influence for the day, both in the tech index and the S&P 500. The Dow Jones closed the day 1.79% down and the Nasdaq fell 2.17%.
In Brazil, the impact of the default drove Ibovespa to the lowest level in the past 10 months, closing the day at 108,843 points – a decrease of 2.33%.
According to Reuters news agency, Evergrande’s default has created fears of a Chinese housing crisis that could have widespread consequences for the global economy, similar to the crisis in 2008 generated by the US housing bubble.
Driven by the fear of a generalized crisis, the dollar rose 0.78% and closed the quoted day at 5.32 Brazilian Real. This is the highest value of the US currency since August 23, when it was priced at 5.38 Brazilian Real.
*With information from Reuters.