Fears over China’s economy are rising as Beijing district launches mass-testing, factory confidence drops and more British households are hit by rising costs
- Latest: Biggest drop in UK manufacturing confidence since April 2020
- More households find it hard to pay bills in March
- Nine out of 10 adults see rise in cost of living
- Introduction: China lockdown fears hit markets
- China’s CSI 300’s biggest fall since February 2020
- UK’s FTSE 100 hits five-week low…. crude oil tumbles 4%
- Pound falls to 18-month low vs US dollar
- Panic buying in Beijing as largest district begins mass testing
Worries that the Chinese economy is heading for a sharp slowdown this quarter are hitting markets today, says the strategy team at Saxo Bank:
White-knuckle markets after an ugly close Friday on Wall Street spilled into the Monday session in Asia, with concerns of new strict Covid lockdowns in Beijing driving an ugly move lower in Chinese equities and a steep drop in crude oil.
Also, the sudden Chinese decision to weaken its currency at a blistering pace last week has unsettled currency markets, driving an sharp acceleration lower in EM [emerging market] currencies in particular.