The daily business briefing: September 28, 2023

China Evergrande suspends trading on Hong Kong stock exchange, oil prices jump to highest level in a year, and more

Hong Kong Stock Exchange
Hong Kong stock exchange
(Image credit: Michael Ho Wai Lee / SOPA Images/LightRocket via Getty Images)

1. Evergrande shares halted as debt concerns mount

The Hong Kong stock exchange posted a notice Thursday saying trading of China Evergrande shares was suspended. The exchange did not give a reason for halting trade in the Chinese property developer, which continues to struggle with crushing debt. The news came a day after Bloomberg News, citing people familiar with the matter, reported that authorities had placed the company's chair, Hui Ka Yan, under watch earlier this month. It was not immediately clear why Hui had been placed under so-called residential surveillance, a police action short of arrest that does not necessarily mean he will be charged with a crime, Bloomberg said. Trading in Evergrande shares had only resumed Aug. 28 after a 17-month suspension sparked by the company's debt problems. Bloomberg

2. Oil prices rise to highest level in a year

U.S. crude oil futures rose 3.6% to $93.68 per barrel on Wednesday, the highest level since August 2022. The price of the U.S. benchmark, West Texas Intermediate, has jumped more than 30% since June. The surge started in early July after OPEC and allies led by Russia cut supply to a level lower than demand to boost prices. The three-month rally has revived concerns that oil could reach $100 a barrel, although the pace of the increases has slowed in the past week. India, a key consumer, has warned that higher prices are hurting its economy, raising questions about whether demand will fall next years. The Wall Street Journal, Bloomberg

3. Economists say short shutdown wouldn't trigger recession

Economists on Wall Street and in the Biden administration said a federal government shutdown — more likely after House Republican leaders rejected a Senate fix on Wednesday — would be unlikely to significantly slow the economy and trigger a recession if it was brief, The New York Times reported. The assessment is largely based on what happened to the economy in previous shutdowns. But the experts warned that a prolonged shutdown could slow growth and compound pressures on the economy from high interest rates, renewed federal student loan payments, rising gas prices and a potentially extended strike by auto workers, according to the Times. The New York Times, The Washington Post

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.


Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

4. Stock futures little changed after mixed day

U.S. stock futures struggled early Thursday after rising oil prices helped keep benchmark Treasury yields near a 16-year high. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.1% at 6:30 a.m. ET, while those of the tech-heavy Nasdaq were down 0.1%. Rising Treasury yields weighed on stocks Wednesday. The Dow and Nasdaq fell 0.2%. The S&P 500 was essentially flat. "While technically Wednesday marks Day 1 of a rally attempt, the market is in a correction," Investor's Business Daily assessed. "The risks are very high for any buys." MarketWatch, Investor's Business Daily

5. Lululemon partnership lifts Peloton shares

Peloton shares jumped more than 15% in extended trading Wednesday after the exercise equipment company and Lululemon announced a five-year partnership to share fitness content. The deal will bring Peloton's streaming workout content to Lululemon's exercise app and make Lululemon Peloton's primary athletic apparel partner. The companies will offer co-branded apparel, and selected Peloton instructors will serve as Lululemon ambassadors. As part of the deal, Peloton content will be offered to users of the Lululemon Studio Mirror, which lets users work out in front of a 43-inch screen, and on Lululemon's free digital app. Lululemon shares were flat in after-hours trading. CNBC

Continue reading for free

We hope you're enjoying The Week's refreshingly open-minded journalism.

Subscribed to The Week? Register your account with the same email as your subscription.