Investors are considering the result of the German election over the weekend which ended in a narrow victory for the Social Democrats. There will likely be months of negotiation before a new coalition will be agreed.
Tensions between the US and China may have eased slightly after an agreement was reached with US prosecutors to end the fraud case against the daughter of Huawei’s founder.
The Evergrande situation remains a cause for concern for investors. The giant Chinese property developer did not make an interest payment last week to its offshore bondholders and has still made no announcement. The company has entered a 30-day grace period and if the payment isn’t made will find itself in default.
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