October 12th, European session

Coal price in China has reached a new high due to the closure of mines. Steam coal prices rose 8% on the Zhengzhou Commodity Exchange on Tuesday. Shanxi province, which produces about a third of China's coal this year, has been forced to temporarily close dozens of mines due to flooding.

The CSI300 index fell 0.7% to 4,903.61 points at the end of the morning session, while the Shanghai Composite index fell 1% to 3,554.38 points.
The Hang Seng Index fell 1% to 25,066.05 points. China's Hong Kong Enterprise Index lost 1.2% to 8,891.36 points.

Sinic Holdings Group Co. became the latest Chinese real estate firm to warn of imminent default as rising risk of contamination leaves investors wondering who else might face a credit crunch.
Sinic's woes are another sign of hidden risks for investors in China's beleaguered debt market, as uncertainty over the future of Asia's largest junk bond issuer, China Evergrande Group, weighs on the sector.

**Interesting topics for the market, so both can have an impact on the market **

• The President of the Federal Reserve Bank of Atlanta, Rafael Bostic, will deliver a speech on "Inflation" (19:30 GMT +3). He participates in a virtual event hosted by the Peterson Institute for International Economics.
• US Federal Reserve Deputy Chairman Richard Clarida will talk about the economic outlook and US monetary policy ahead of the virtual annual meeting of the Institute of International Finance (at 18:15 GMT +3).

Two non-executive directors at Fantasia Holdings Group Co. resigned days after the company alarmed investors by failing to pay $ 206 million on its dollar-denominated bonds at maturity.
Fantasia's October 4 default, coupled with poor sales by Chinese real estate developers, raised fears that the sector's difficulties extend far beyond the ailing China Evergrande Group.

Evergrande New Energy Vehicle Group shares rose 5.7% after the company said Monday it intends to start producing electric vehicles (EVs) next year, despite a lack of outside investment.

EUR/USD has returned to the 1.1550 level after the release of the disappointing German ZEW. Plus, the euro is pressed by the discrepancy in the monetary policy of the Fed and the ECB. The yield on US10Y is declining. AUD and NZD are trading in positive territory. The euro can and will hold above 1.1550.

ZEW:
"Compared to the previous month, the prospects for economic development in the next six months have deteriorated markedly."
“The further decline in the ZEW Economic Sentiment Indicator is mainly due to continued bottlenecks in the supply of raw materials and intermediates.”
"Financial market experts expect lower profits, especially in export-oriented sectors such as the automotive and chemical / pharmaceutical industries."

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