China's reopening following three years of zero-tolerance COVID-19 policies is running out of steam, producing a worrisome development for financial markets.
China’s reopening following three years of zero-tolerance COVID-19 policies is already running out of steam, producing a worrisome development for financial markets.
The concern is that the global economy may be losing one of its last major legs of possible support. Earlier this year, China’s reopening was seen as having the potential to reignite another round of inflation pressures worldwide. Now, though, inflation is steadily easing in the U.S., with much of the financial market’s focus instead turning to the prospects for economic weakness domestically and overseas.
“People have doubts about the sustainability of the U.S.’s recovery and fear that the U.S. could go into a recession. There are also doubts about Europe, albeit to a lesser extent. So people were still hoping China could carry the torch for the global recovery, and help mitigate the extent of any global downturn,” Wizman said via phone on Wednesday. Now, though, “people may fear that every major center of the global economy is set to slowdown and any global downturn may be more pronounced.
Optimism around “an ‘out of the gates’ recovery” has clearly faded in China, and the negative turn in sentiment toward the Asian country “is also undercutting the view that economic performance outside the U.S. will stay more robust than inside the U.S.,” the strategists wrote. This was “probably a key reason behind the broad rally in the dollar since last week that has also set back the euro, British pound, the yen, the Australian dollar, and the Canadian dollar.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
China's Baidu beats quarterly revenue estimates on China re-openingSearch engine giant Baidu Inc beat first-quarter revenue estimates on Tuesday as businesses spent more on advertising amid China's economy recovery, after the country dropped most of its strict COVID curbs late last year.
Lire la suite »
China's factory output, consumption highlight frail post-COVID economic recoveryTuesday's batch of data does little to allay concerns about China's outlook.
Lire la suite »
Sen. Marco Rubio releases COVID-19 origins report detailing suspicious behavior in ChinaSen. Marco Rubio released Wednesday a report offering a “mountain of circumstantial evidence” that the coronavirus leaked from a lab in Wuhan, China, instead of spilling over from nature.
Lire la suite »
China's April data show economic recovery losing steam, testing policymakersChina's April industrial output and retail sales growth undershot forecasts, suggesting the economy lost momentum at the beginning of the second quarter and intensifying pressure on policymakers to shore up a wobbly post-COVID recovery.
Lire la suite »
China's April data show economic recovery losing steam, testing policymakers By Reuters*CHINA'S APRIL DATA SHOW ECONOMIC RECOVERY LOSING STEAM AMID GLOBAL GROWTH FEARS 🇨🇳🇨🇳
Lire la suite »
Morning bid: Eyes on Japan GDP, China losing steamA look at the day ahead in Asian markets from Jamie McGeever.
Lire la suite »