Thursday Briefing: Stocks shrug off hawkish Fed, Evergrande soars in China

The Reuters Daily Briefing Thursday, September 23, 2021 by Linda Noakes Hello Here's what you need to know. Investors look ahead to rate hikes, Republicans see an opportunity in the U.S. debt-ceiling standoff, and read our guide to Germany's baffling electoral system Today's biggest stories A screen displays a statement by Federal Reserve Chair Jerome Powell as a trader works on the trading floor of the New York Stock Exchange, September 22, 2021. REUTERS/Brendan McDermid BUSINESS World markets rallied after the U.S. Federal Reserve confirmed plans to start reeling in stimulus, Norway became the first rich economy to raise rates since COVID struck and China Evergrande shares leapt ahead of a crucial debt payment. Investors are grappling with how an unwind of the Federal Reserve’s easy money policies could affect asset prices, after the central bank signaled that a taper of its bond-buying program was closer than ever and suggested it may raise rates at a faster-than-expected pace. Euro zone business growth was much weaker than expected this month as curbs to limit the Delta variant of coronavirus hit demand and already worsened supply-chain constraints pushed input cost rises to an over two-decade high. Brazil's central bank raised interest rates by 100 basis points and flagged a third straight hike of that size in October as it battles surging inflation with the world's most aggressive monetary tightening. Is China Evergrande another Lehman Brothers moment? Not at all, according to the $40 trillion global corporate debt market. Breakingviews columnist Neil Unmack says credit markets will withstand Evergrande shocks. Police officers block a road as lava rises following the eruption of a volcano on the Island of La Palma, in Tacande, Spain, September 22, 2021. REUTERS/Borja Suarez WORLD Jets of red hot lava shot high into the sky on the Spanish island of La Palma as toxic ash from the Cumbre Vieja volcano coated the surrounding area and authorities sought shelter for thousands of people forced to flee. Hundreds of Haitian asylum seekers congregated outside Mexico's refugee agency in the capital and in shelters in the northern city of Monterrey, as migrants deterred by a crackdown at the U.S. border sought legal status in Mexico. A shadow is looming over Germany's election: the specter of the far-left Linke party, heir to the communists who once ruled East Germany, coming in from the political wilderness. Germany's electoral system is baffling even to Germans - we explain how it works. Norway's centre-left election winners are meeting for three-way talks to determine whether they can form a majority coalition government, with oil, taxes and EU relations among the sticking points. Sudanese authorities have taken control of lucrative assets that for years provided backing for Hamas, shedding light on how the country served as a haven for the Palestinian militant group under former leader Omar al-Bashir. U.S. In a high-stakes standoff over the U.S. debt ceiling, congressional Republicans believe they see a chance to scale back President Joe Biden's sweeping domestic agenda while boosting their odds of retaking Congress in 2022. The U.S. Food and Drug Administration authorized a booster dose of the Pfizer and BioNTech COVID-19 vaccine for those 65 and older, all people at high risk of severe disease, and others who are regularly exposed to the virus. Alaska, which led most U.S. states in coronavirus vaccinations months ago, took the drastic step of imposing crisis-care standards for its entire hospital system, declaring that a crushing surge in COVID-19 patients has forced rationing of strained medical resources. A Florida Republican lawmaker has filed a bill that would ban abortions after six to eight weeks and allow members of the community to sue doctors for terminating pregnancies in what may be the first effort to mirror a similar new law in Texas. The exhaustive search for slain travel blogger Gabby Petito's fiance in a vast Florida wilderness entered a sixth day as the mystery deepened around a case that has engrossed Americans. Activists lament that the crisis of missing and murdered Native American women doesn't get the attention paid to Petito. Quote of the day "I thought that if I made it through three waves without getting infected, I can make it through another one without a vaccine" Roxana Pascu COVID patient Romanian hospitals fill up with COVID patients amid widespread vaccine refusal Video of the day Produce-growing robots drawing major green investors As California dries out amid a crippling drought, a Silicon Valley company believes robots can grow produce more sustainably, and Bill Gates' Breakthrough Energy ventures is betting on them by leading the latest $50 million funding round. And finally… Dodging lorries, lava and war, Congo's skaters feel reborn When the Nyiragongo volcano erupted in May, Serge Makolo only had time to grab his roller skates and a fistful of medals before the magma swallowed his house. More from Reuters COVID-19 Reuters Investigates Legal news The Great Reboot Thanks for spending part of your day with us. 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