After suspending trading for more than two weeks, the property behemoth reopened much lower after it announced that it abandoned its project to sell a $2.6 billion stake in a subsidiary. Investors are worrying about systemic effects on the global economy, should Evergrande collapse.
The session also brings a new batch of corporate results, including Barclays and SAP. The British bank saw its net profit quadruple in the first nine months of the year compared to 2020, buoyed by a "record" performance in the third quarter thanks to the reopening economy.
The group's net profit climbed to 5.3 billion pounds for the first nine months of the year, but sales remained flat year-on-year at 16.8 billion pounds, due to a decline in interest rate income and an increase in commissions and other fees. In the third quarter alone, the group's net profit more than doubled to £1.4 billion.
Meanwhile, worries about Evergrande hit miner Anglo American, which dropped 1.9% despite good quarterly results. Unilever rose 0.9% after beating its sales guidance.
Things to read:
ECB pushes banks to boost their post-Brexit operations (Financial Times)
China Evergrande Calls Off Plans to Sell Key Unit for $2.6 Billion (WSJ)