S&P/ASX 200 (INDEXASX:XJO) slipped 0.45% to 7,351 points by about 13.23 pm as Chinese property giant Evergrande has officially been labelled a defaulter for the first time.
Fitch Ratings cut the developer to restricted default over its failure to meet interest payments after a grace period expired on Monday.
Evergrande, which has disclosed more than US$300 billion of total liabilities, said on 3 December that it plans to “actively engage" with offshore creditors on a restructuring plan.
US inflation approaches 40-year high
Investors in the US are bracing for the highest inflation reading in nearly 40 years.
Wall Street analysts expects the consumer price index reading to be released on Friday to reflect a 0.7% gain for November, which would translate into a 6.7% increase from a year ago.
This could mark the highest year over year increase since 1982.
Fortescue CEO to step down
Fortescue Metals Group (ASX:FMG)’s Elizabeth Gaines will step aside as chief executive officer, as the miner moves from a pure-play iron ore producer to a diversified renewable energy and resources firm.
Gaines will remain on Fortescue’s board as a non-executive director and will become an ambassador for the company’s global green hydrogen brand.
Fortescue’s share price has quadrupled since Ms Gaines began leading the company in February 2018.
Today’s gainers
Despite the weakness in the market, many stocks including Emmerson Resources Ltd (ASX:ERM) (+10%), RTG Mining Inc (ASX:RTG, TSX:RTG) (+10%) and West Wits Mining (+9.68%) rose.