# Stocks claw back as markets calm after Evergrande-led slide
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-21
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Global Stock Markets Edge Back as Dollar Holds Steady Amid
Meta Description: World stock markets take a breather after Evergrande scare. Dollar holds steady. European indexes up, Wall Street gains. Stay updated with Reuters.
URL: https://financedigest.com/stocks-claw-back-as-markets-calm-after-evergrande-led-slidehtml

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By Lewis Krauskopf and Lawrence White

NEW YORK/LONDON(Reuters) – World stock markets edged back on Tuesday while the U.S. [dollar held relatively steady](https://www.financedigest.com/shares-steady-dollar-dips-as-us-holiday-lifts-rates-gloom.html "Shares steady, dollar dips as US holiday lifts rates gloom") a day after heavy selling in equities, as investors assessed the level of contagion stemming from the distress of debt-saddled developer China Evergrande.

MSCI’s gauge of stocks [across the globe](https://www.financedigest.com/sales-of-medical-beds-across-the-globe-are-estimated-to-exceed-us-3000-mn-in-revenues-by-2022-end.html "Sales of Medical Beds Across the Globe are Estimated to Exceed US$ 3,000 Mn in Revenues by 2022-end") .MIWD00000PUS gained 0.35%, following Monday’s biggest percentage drop in two months. European indexes rose solidly while [Wall Street’s](https://www.financedigest.com/wall-street-stocks-power-higher-as-treasury-yields-and-dollar-ease.html "Wall Street stocks power higher as Treasury yields and dollar ease") main gauges were gaining in afternoon trade.

Price moves in bonds and currencies were relatively subdued. On Monday, safe-haven assets drew [bids as investors](https://www.financedigest.com/glencore-courts-120-teck-investors-for-bid-backing-as-spinoff-vote-looms-source.html "Glencore courts 120 Teck investors for bid backing as spinoff vote looms -source") became risk averse.

Investors were still focused on the situation at Evergrande, where persistent default fears eclipsed efforts by the debt-laden group’s chairman to lift confidence as Beijing showed no sign it would intervene to stem any domino effects across the [global economy](https://www.financedigest.com/floods-other-water-related-disasters-could-cost-global-economy-5-6-trillion-by-2050-report.html "Floods, other water-related disasters could cost global economy .6 trillion by 2050 -report").

There are still issues that the [market is dealing with,” said David Joy, chief market strategist at Ameriprise Financial](https://www.financedigest.com/the-political-wildcard-what-is-trumps-us-presidential-nomination-doing-to-financial-markets.html "The political wildcard: What is Trump’s US presidential nomination doing to financial markets?") in Boston. “But stabilization is a good thing after the downdraft that we had yesterday.”

On [Wall Street](https://www.financedigest.com/asian-stocks-edge-up-before-u-s-jobs-data-defying-wall-street-selloff.html "Asian stocks edge up before U.S. jobs data, defying Wall Street selloff"), the Dow Jones Industrial Average .DJI rose 128.56 points, or 0.38%, to 34,099.03, the S&P 500 .SPX gained 13.23 points, or 0.30%, to 4,370.96 and the Nasdaq Composite .IXIC added 66.90 points, or 0.45%, to 14,780.80.

The Cboe Volatility Index .VIX retreated after hitting a four-month high a day earlier, last down 2.25 points to 23.46.

The pan-European STOXX 600 index .STOXX rose 1%, with Germany’s DAX .GDAXI rising 1.4%.

Canada’s main stock index .GSPTSE [gained as Prime Minister Justin Trudeau’s limited victory in the federal election raised hopes](https://www.financedigest.com/stocks-dollar-gain-on-soft-landing-hopes.html "Stocks, dollar gain on soft landing hopes") that his government would keep the stimulus taps open.

Central bank meetings in the United States and elsewhere in the world were soon to take [center stage](https://www.financedigest.com/2021-predictions-operational-resilience-takes-center-stage.html "2021 Predictions: Operational Resilience Takes Center Stage") for markets, with a Federal Reserve meeting due to conclude on Wednesday as investors look for when it will ease its bond-buying program.

In [currency trading](https://www.financedigest.com/currency-trading-in-a-spin-after-polish-explosion.html "Currency trading in a spin after Polish explosion"), the dollar index =USD fell 0.053%, with the euro EUR= up 0.02% to $1.1727. The Japanese yen strengthened 0.12% [versus the greenback at 109.25 per dollar](https://www.financedigest.com/russian-rouble-nears-4-week-high-versus-dollar.html "Russian rouble nears 4-week high versus dollar")

There is just a lot of wait-and-see as far as what is going to happen with the Fed, what is going to happen with Evergrande, and right now if you are [trying to make a dollar bet you really just want to wait until you get a better sense of what is going to happen with Evergrande and what the Chinese government](https://www.financedigest.com/factbox-how-governments-are-trying-to-ease-inflation-pain.html "Factbox-How governments are trying to ease inflation pain") is going to do,” said Edward Moya, senior market analyst at OANDA in New York.

Benchmark 10-year notes US10YT=RR last fell 3/32 in [price to yield](https://www.financedigest.com/stocks-jump-as-treasury-yields-ease-and-oil-prices-sell-off.html "Stocks jump as Treasury yields ease and oil prices sell off") 1.318%, from 1.309% late on Monday.

Oil prices [edged higher](https://www.financedigest.com/londons-ftse-100-edges-higher-set-for-fourth-weekly-gain.html "London’s FTSE 100 edges higher, set for fourth weekly gain") in a see-saw session, as concerns about the global consumption outlook counterbalanced the struggle by big OPEC producers to pump enough supply to meet growing demand.

U.S. crude CLc1 rose 0.23% to $70.45 per barrel and Brent LCOc1 was at $74.07, up 0.2% on the day.

Spot gold XAU= added 0.7% to $1,776.27 an ounce.

(Additional reporting by Chuck Mikolajczak in New York, Tom Westbrook in Singapore, Hideyuki Sano in Tokyo, Anushka Trivedi in Bengaluru, Paulina Duran in Sydney and Danilo Masoni in Milan; Editing by Dan Grebler and Steve Orlofsky)


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