Dhara Ranasinghe gives a glimpse at what lies ahead.

On Wednesday markets were mixed with fear and hope, but investors are not showing any signs of slowing down until the end of the year.

Let’s begin with the fear, which centers on China’s unstable property sector. Evergrande, the largest Chinese developer, has seen its shares fall to their lowest level in years. China is at serious risk of becoming China’s most defaulting company.

Notable, too is the suspension of trading in Kaisa Group Holdings’ shares. This was after an insider with knowledge of the matter stated that Kaisa would not be able to fulfill a deadline of $400 million for offshore debt repayments.

Evergrande is hopeful of managing its debt restructuring. This should help to ease the anxiety. Even though the effects of the recession have been contained so far, there are still concerns about how this crisis could impact the second largest economy in the world.

However, as the trading baton crosses from Asia into Europe it is hope that this will continue to be true.

Asian shares rose to close to two week highs, fueled by optimism that Omicron’s coronavirus might be less disruptive then initially thought.

U.S. stock options are rising, while European ones are falling. The dollar also saw a sentiment increase, reaching its highest point in just a week.

The markets have proven to be resilient to political crisis and seem to ignore President Joe Biden’s warnings that Russia could take “strong economic, other measures”, if it invades Ukraine.

Perhaps the news that Biden-Putin will be having a 2-hour chat with him is a good thing.

The end is near for Germany with Olaf Scholz taking over the Chancellorship. It will bring an end 16-year-old tenure of Angela Merkel at Europe’s most important economy.

Markets should be more informed by key developments on Wednesday

Australia supports the boycott diplomatically of Beijing Winter Games

India’s Central Bank holds Rates as Inflation, Omicron Risks Loom

Weibo shares (NASDAQ:) fall by 6% below the Hong Kong listing issue price

Japan lowers its Q3 GDP due to a deeper impact on consumer spending

– German exports/current account

– ECB speakers: President Christine Lagarde, Vice-President policymakers Luis de Guindos, board member Isabel Schnabel

Iceland central bank meets

US JOLTS Job Openings (10-year Treasury Auction)

– U.S. earnings. Gamestop, Campbell soup

– European earnings: TUI, Stagecoach, Berkeley

Bank of Canada Meetings