Stock Markets Tumble: A Volatile Market Pressures Global Markets

Stock Markets Tumble: A Volatile Market Pressures Global Markets

It was "manic Monday" on Wall Street. In a blunt and unpleasant reminder of how crises thousands of miles away can puncture the heart of the U. S. markets, a real estate crisis in Hong Kong took much of the blame for the sharpest daily losses in more than two months for the major U. S. indices. The so-called "horsemen of risk" like bonds, volatility, the U. S. dollar, and "defensive" stock sectors climbed back into the saddle after months of lazing around the corral. While analysts mainly cited the issues around Hong Kong-listed Chinese developer Evergrande Group and whether Beijing will let the debt-laden firm fail, that wasn't the only issue sending a shudder around the world today. Though it should be noted that a default could mean potentially billions in losses for shareholders and bondholders not just in Asia but throughout the globe. Reuters reported that Evergrande bonds were trading for 29 cents on the dollar on Monday. The news came on top of continued concerns that there could be ripple effects for the rest of the global economy as the Chinese government continues to tap down on its real estate and other industries that it's been trying