Global markets closed lower on Tuesday following a volatile session amid the uncertainty caused by the potential bankruptcy of Chinese real estate developer Evergrande Group.
Of great concern to investors around the world is Evergrande’s debt and its potential effect on real estate market.
According to media reports, the United States government through the Treasury Department is prepared to respondaccordingly if needed to China’s real estate crisis and the potential default of the developer giant Evergrande.
The Dow Jones Industrial Average fell 0.15% at close, the S&P 500 lost 0.08% while the Nasdaq 100 gained 0.22%.
Meanwhile, Adobe Inc. reported on Tuesday that its revenue in the third quarter reached a record high of $3.94 billion, up 22% compared to the same period last year. The largest contribution to the figure was the company’s digital media segment, which rose by 23% to $2.87 billion.
Bank of America on China
Bank of America Corp. reduced expectations for China’s economic growth over the next three years due to delayed policy easing from the country’s government.
The Chinese GDP growth forecast for 2021 has been reduced by 0.3 percentage points to 8%, while the growth estimations for next year plunged from 6.2% to 5.3%. In 2023, the country’s economy is expected to grow by 5.8% instead of 6%.