The Evergrande Debacle has been headline news for the better part of September. For those who do not know anything about the Evergrande Debacle, the cliff notes are: Evergrande is a large Chinese real estate company with more than $300 million in debt. Recently is has come to light that the firm may default, which could cause a trickle down effect in the Chinese Real Estate Market, and cause the Chinese Property Market to Crash. There are many people who have Evergrande fears as a result of this.
In this Trader Summit Interview, Chris Weston, Head of Research for Pepperstone, sits down with Blake Morrow to discuss the Evergrande what it means to markets, the FOMC and what happened following the meeting. Fed Chairman is Hawkish and suggested wrapping up tapering by the end of 2022. Initial reaction was to sell United States Dollar. Dollar Index has moved up nicely since the FOMC Meeting. Also, he discusses certain things we as traders should be watching regarding the Evergrande situation and how Chinese politics may play a role in this current situation. The Evergrande Debacle may cause a Chinese Property Market Crash! Domestic Confidence is absolutely key for the Chinese. Xi JinPing may get a surprisingly 3rd term. This could cause there to be Evergrande Risk off AUD.