Global markets tumble as China cracks the tech whip

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Investors spooked by Beijing’s fresh swoop on tech firms and brace themselves for tapering signals from the ECB

Pedestrians on Wall Street in front of the New York Stock Exchange on September 7 2021.Picture: BLOOMBERG/MICHAEL NAGLE

Analysts expect the ECB will announce a token step towards reducing its emergency economic support later. Investors had initially been spooked by the idea of tapering, but ECB officials have been working hard in recent weeks to reassure markets that the process will be very gradual. Eurozone bond yields, which reflect governments’ borrowing costs and drive lending rates throughout financial markets, were holding near eight-week highs.

US stock futures, the S&P 500 e-minis, were down 0.25% after declines from Apple and Facebook on Wednesday and after one of the Fed’s policymakers had urged the central bank to get on with its own plans to wind down stimulus. There was more trouble too for the country'’ most indebted property giant, Evergrande. Media reports that the company would suspend some interest payments on loans and payments to its wealth management products hit its shares, which dropped more than 10%. Its Shenzhen-traded January 2023 bond halted after it fell more than 20%.

 

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