Categories: Market Overview

China’s Covid lockdown could have economic costs to the world, says strategist

China has tightened Covid-19 measures to combat an uptick in daily cases — a move that could hold back the country’s economic growth and hit its stock markets, said veteran strategist David Roche. Investor sentiment toward Chinese stocks has been dampened by Beijing’s regulatory crackdown on sectors including technology and after-school tutoring.

“Markets have got into the mode of thinking Covid is very … bad, but economic recovery (is) taking away lockdowns, removing social restrictions — that’s kind of the world recipe at the moment,” Roche, president and global strategist at Independent Strategy, told CNBC’s “Street Signs Asia” on Tuesday. “Well it’s very much not the world recipe in China for good reasons, and therefore markets have to come to terms with the fact that there are economic costs not only within China, but globally as a result of this,” he added.

The country’s National Health Commission reported 143 new Covid cases in mainland China on Monday — the highest number of daily infections since January, according to Reuters. Chinese state media attributed the latest resurgence in infections to the highly transmissible delta variant. Chinese authorities last week ordered mass testing in Wuhan city — where the coronavirus was first detected — and imposed widespread movement restrictions in major cities including Beijing.

Some economists have raised concerns about China’s “zero tolerance” approach to Covid, which refers to the country’s aggressive clampdown on any flare-ups in Covid cases. The approach, which includes strict lockdowns and mass testing, helped China keep previous outbreaks under control before the latest resurgence. But the delta variant is more contagious and could be more difficult to contain — and that could hurt economic recovery in China, economists have warned.

China’s Covid lockdown could have economic costs to the world, says strategist, CNBC, Aug 10

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team

Recent Posts

Nasdaq 100 Wave Analysis 23 December 2024

- Nasdaq 100 reversed from strong support level 21000.00 - Likely to rise to resistance…

1 day ago

USDJPY Wave Analysis 23 December 2024

- USDJPY reversed from key support level 156.35 - Likely to rise to resistance level…

1 day ago

US indices: has the bullish trend broken?

The recent declines in US indices may have broken the bullish trend, indicated by technical…

2 days ago

Dollar: Slowing Momentum, Same Direction

The dollar has paused its strengthening, as weaker-than-expected inflation data reduces fear of future Fed…

2 days ago

Bitcoin Fell Back to Local Support

Bitcoin finds support near the 50-day moving average, but further declines in the stock market…

2 days ago

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

5 days ago

This website uses cookies