07/03/14 Market Movements
The FTSE closed down 75.82 points (1.12%) at 6,712.67 as a landmark corporate bond default in China (the world’s top metals consumer) hit mining stocks.
Solar panel maker Shanghai Chaori Solar Energy Science & Technology defaulted on interest payments owed on its bond, making it is the first Chinese firm ever to default on its onshore corporate bonds.
The landmark default is likely to force a re-pricing of credit risk as Investors have always assumed that the Chinese government would bail out any Chinese corporation in danger of defaulting.
The tension lingering around the crisis in Ukraine also weighed on the market as a U.S. warship passed on its way to the Black Sea. The U.S. military described this as a “routine” deployment scheduled well before the crisis in Ukraine.
CAT stock is currently down 0.51% at $97.10