New cases of covid-19 overlap with the strength of the Chinese economy and exchanges slide
Asian exchanges have closed in the red and this is the color with which u.S. bond futures are already painted. The new wave of covid-19 cases, which are already over 10 million globally, is overshadowing some positive signals from the Chinese economy.
Japan’s Topix, Hong Kong’s Hang Seng and South Korea’s Kospi all fell 1.5 percent, while Australia’s S&P/ASX 200 fell 2 percent.
China’s Shanghai Composite posted more modest losses of 0.7 percent after china’s industrial sector showed its first increase in profits since last November. At the same time, the People’s Bank of China has announced that it will implement new monetary measures to make sure liquidity reaches the real economy.
A positive sign that is not enough to cheer the outlook for Western exchanges, with the Futures of the North American S&P500 yielding 0.1%. Leaving investors withdrawn is the increase in the number of covid-19 cases, which is containing states such as Texas, Arizona and Florida.
“The recovery is going to be much slower and much more uneven than most people think,” PGIM CEO David Hunt told Bloomberg. “Markets are tipping for a much steeper V-recovery, which we don’t consider likely.”