FTSE 100 Live: Evergrande debt fears rise, wild weekend for bitcoin

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Debt-ridden developer Evergrande has been under pressure at the start of the new trading week, adding to the pressure on markets in Asia.

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Shares of Evergrande fell 12% and the Hang Seng index in Hong Kong fell more than 1.5%, as the property firm said it could not guarantee it had enough money to meet repayments.

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The price of bitcoin was also closely monitored after the cryptocurrency plunged to $10,000 in a matter of minutes on Saturday. It has since stabilized and stood at just over $48,000.

live update

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Evergrande Bearish, Bitcoin Recovers

Shares of Evergrande have fallen to an 11-year low as the struggling property developer warned there was no guarantee it had enough money to meet debt obligations.

The 12% drop occurred at the end of the 30-day grace period for repayment of $82.5 million, which was originally due on November 6.

With Evergrande reportedly owed $300 billion, any default has the potential to spread infection to Asia’s property sector.

Hong Kong’s Hang Seng index mirrored the Evergrande shock on Monday, with concerns over the Omicron version of Covid-19 also contributing to a 1.7% drop.

European markets appear more resilient at the start of the week, with CMC Markets forecasting the FTSE 100 index to open 48 points higher at 7,170.

Recent volatile trading performance continues to improve after the FTSE 100 index closed lower on Friday following disappointing monthly US jobs data.

In the commodity market, Brent crude futures rose 2.5% to $71.56 a barrel after Saudi Arabia raised January prices to $0.60 a barrel for Asian and US clients.

Bitcoin stood at $48,206 after a wild weekend, with the cryptocurrency falling to $10,000 in the space of a few minutes on Saturday.

The low of around $42,000 was compared to $57,000 earlier on Friday and was blamed on the panic caused by the Omicron version.

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