Data showing a flare-up of fresh Covid-19 cases in China revived concerns about the government’s policy of locking down towns and cities to eradicate the disease, despite the economic cost.
“While the data is suggesting a US economic slowdown is coming, we are not yet seeing signs of an ease in inflationary pressures, an important distinction given the Fed will continue with its aggressive tightening approach until it sees evidence of the latter,” he said in a commentary. Still, while surging prices remain a huge problem, Chris Weston, at Pepperstone Group, said the psychology is “shifting radically from inflation concerns to one now where we’re firmly focused on growth”.Hong Kong dropped as investors returned from a long weekend to play catch-up with Friday’s losses, while Seoul, Taipei, Bangok and Jakarta were also down.London, Paris and Frankfurt rose in early trade, though US futures were in the red.
The country saw more than 700 new infections Saturday and Sunday, having held below 50 a day for the previous two weeks.