Tue, 26 Oct 2021

NEW YORK, New York - U.S. stocks rose strongly on Wednesday as the Chinese real estate giant China Evergrande began meeting interest payments on maturing bonds.

The property developer remains under severe stress with more than $305 billion worth of debt, with a number of issues becoming due in coming days,

The U.S. Federal Reserve indicated Wednesday interest rate hikes may occur as early as next year. The central bank also signaled it would commence reducing its monthly bond purchases "soon."

All the major indices finished around one percent ahead, but all finished well off their intraday highs.

"We're going to see a little bit more volatility till there are new leaders leading the way," Paul Feinstein, chief executive officer of Audent Global Asset Management told Reuters news agency Wednesday.

"The markets are trying to digest what the next six-nine months are going to look like, especially with all the news coming out of China."

At the close on Wednesday, the Dow Jones industrials were ahead 338.48 points or 1.00 percent at 34,258.32.

The Nasdaq Composite advanced 150.45 points or 1.02 percent to 14,896.85.

The Standard and Poor's 500 regained 41.45 points or 0.95 percent to 4,385.64.

The U.S. dollar rose strongly on the prospect of higher interest rates sooner than expected. The euro was pushed down to 1.1698 approaching the New York close Wednesday. The British pound slipped to 1.3625. The Japanese yen weakened to 109.81. The Swiss franc eased to 0.9260.

The Canadian dollar inched higher to 1.2754. The Australian dollar was unchanged at 0.7246. The New Zealand dollar was a fraction lower at 0.7013.

On overseas markets, the FTSE 100 in London jumped 1.47 percent. The German Dax rose 1.03 percent. In Paris, the CAC 40 was up 1.29 percent.

In Asia, China's Shanghai Composite was ahead 15.52 points or 0.40 percent to 3,628.49, Business Sun reported.

In Hong Kong, the Hang Seng advanced 122.40 points or 0.51 percent to 24,221.54.

Japan's Nikkei 225, going against the trend, dived 200.31 points or 0.67 percent to 29,639.40.

The Australian All Ordinaries gained 30.20 points or 0.41 percent to 7,593.80.

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