fbpx

PU Prime App

Exclusive deals on mobile

  • Market Insights  >  Weekly Outlook

21 March 2022,02:34

Weekly Outlook

China Sees Worst Covid-19 Outbreak Since Pandemic Start

21 March 2022, 02:34

Share on:
FacebookLinkedInTwitterShare
Share on:
FacebookLinkedInTwitterShare

28 of China’s 31 provinces have recently seen an outbreak of the highly-infectious Omicron variant of the coronavirus. With over 15,000 infected, this is the largest outbreak China has seen since the initial wave of the virus. The recent outbreak has hit major cities including Shanghai and Shenzhen. Dongguan city, the fifth-largest contributor to China’s economic output, has ordered employees to work from home while locking down residential areas. Industrial areas with reported local cases have also been ordered to stop production. While numbers seem low compared to the rest of the world, analysts say China’s zero-Covid policy will be tested to its limits. Expanded lockdowns threaten an already-strained global supply chain as manufacturers have already begun issuing warnings of shipment delays.

Market Reacts to Positive Outlook on Russian-Ukraine Talks

After negotiations over the weekend, both Russia and Ukraine have given favourable assessments of a possible diplomatic solution to the Russian-Ukraine conflict.  Ukrainian negotiator Mykhailo Podolyak has said that Russia has begun to “talk constructively”, while the Russians have said that both delegations could soon draft agreements. More recently, Ukrainian president Volodymyr Zelensky has also said that Russian demands have become “more realistic”. Markets have predictably reacted to the news, with crude and gold prices losing the gains made in the past month. Equities have also rallied at the news, with major US indices closing positive on Tuesday.

Chinese Stocks Stage Massive Rebound

Amid fears that global sanctions against Russia might spread to China due to the two countries’ close relationship, Chinese stocks listed in Hong Kong saw their largest fall since 2008. On Monday, the Hang Seng Enterprise index closed 7.2% lower while the Tech index closed 11% lower. Regulatory worries also gripped the markets, with Tencent dropping 10.2% in the face of a potential fine due to a possible breach of China’s money laundering and privacy rules.

The sell-off would not last for long though, as Hong Kong stocks mounted a massive comeback as the Chinese government denied US claims that Russia was asking China for military assistance. Beijing has said that it would not be implicated in the sanctions against Russia, causing the Hang Seng Index to jump 7.3% at the news, with the Tech Index rising a record 17%.

Bắt đầu Giao dịch với lợi thế

Giao dịch ngoại hối, chỉ số, Kim loại,...với phí chênh lệch thấp trong ngành và khớp lệnh nhanh như chớp

  • Bắt đầu giao dịch với số tiền nạp thấp nhất là $50 cho tài khoản Standard của chúng tôi.
  • Hỗ trợ 24/7.
  • Truy cập hàng trăm công cụ, công cụ giáo dục miễn phí và một số chương trình khuyến mãi tốt nhất xung quanh.
Tham gia ngay

Latest Posts

Mở tài khoản nhanh chóng và dễ dàng

Tạo tài khoản Live
  • 1

    Đăng ký

    Đăng ký Tài khoản Live PU Prime với quy trình đơn giản của chúng tôi

  • 2

    Nạp tiền

    Dễ dàng nạp tiền vào tài khoản của bạn với nhiều kênh nạp tiền và loại tiền tệ được chấp nhận

  • 3

    Bắt đầu Giao dịch

    Truy cập hàng trăm công cụ trong điều kiện giao dịch hàng đầu thị trường

Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.

Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.

By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.

Thank You for Your Acknowledgement!

Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.

Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.

Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.

Thank You for Your Acknowledgement!