China: Coronavirus cases rise, markets are on edge

Markets are in a state of uncertainty with Wall Street indices closing lower on Monday as investors face a lockdown from China due to Covid outbreaks that could put pressure on the supply chain again. The Chinese capital warned on Monday that it was facing its most severe test of the COVID-19 pandemic.. Markets have doubts about whether the global economy can withstand cycles of central bank interest rate hikes and rising inflation without triggering a recession. Markets try to Finding the balance between the room for further rate hikes and the degree of slowdown in the US and global economy.

In the meantime, China fights numerous waves of COVID-19since Zhengzhouin the central province of Henan, to chongqing, in the southwest. The metropolis of guangzhou, in southern China, closed its largest district on Monday, testing China’s bid to take a more selective approach to its COVID-19 policies, which calls for cities to be more selective in their crackdowns. . Guangzhou reported 8,210 new local COVID-19 cases as of 12:00 a.m. on November 2.

On the other hand, the People’s Bank of China is seeking financial support to stabilize the economy through an additional loan of 200 billion yuan to help support real estate projects in the country in a troubled sector.

pressed oil

Oil prices also fell on Monday amid the Investor concern over economic consequences of escalating COVID situation in China, and risk aversion benefited bonds and the dollar. ”The authorities of the city of Beijing warned that it is facing the most serious and complicated situation of the pandemic.” the ANZ bank analysts explained. ”The People’s Daily reported that while two-thirds of Chinese people aged 80 and over are fully vaccinated, only 40% are boosting. The current outbreak threatens to undo optimism following China’s adoption of a softer zero-covid policy. A looming EU ban on Russian oil imports and a G7 plan to cap prices cloud the outlook.”