{"id":604046,"date":"2023-08-24T00:00:00","date_gmt":"2023-08-24T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/24\/global-stocks-lose-almost-usd-3-tn-in-august-on-china-fears-rising-us-rates\/"},"modified":"2023-08-24T00:00:00","modified_gmt":"2023-08-24T00:00:00","slug":"global-stocks-lose-almost-usd-3-tn-in-august-on-china-fears-rising-us-rates","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/24\/global-stocks-lose-almost-usd-3-tn-in-august-on-china-fears-rising-us-rates\/","title":{"rendered":"Global stocks lose almost USD 3 tn in August on China fears, rising US rates"},"content":{"rendered":"

Global stocks slump on surging yields, China slowdown fears: <\/strong>The US S&P 500, the European Stoxx 600, and China\u2019s CSI 300 have lost almost USD 3 tn so far in August as investors fret over rising US interest rates and China\u2019s economic slowdown, according to research picked up by the Financial Times<\/a>. The poor performance puts MSCI\u2019s global equities index on track for its worst monthly performance since last September. The drop marks a sharp change of fortunes from the first half of the year, when global equities soared on optimism that the Federal Reserve would make the fabled \u201csoft landing\u201d and wind up its tightening cycle without driving the US economy into recession. <\/p>\n

Private credit on the up as private equity struggles: <\/strong> Some of the biggest private equity firms, including KKR and Bain Capital, are handing over distressed companies in their portfolios to the lending units of their competitors, the Financial Times<\/a> reports. After what one Moody\u2019s exec described as \u201cmany years of easy money and low interest rates where companies owned by private equity took advantage,\u201d portfolio companies are now grappling with higher interest rates, persistent inflation, and supply chain problems. That has meant they\u2019re increasingly being forced to cede heavily leveraged companies to private credit, the salmon-colored paper says. <\/p>\n

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