Global markets shook from Wall Street and China vowed no Covid

Major European indices fell in early trading. They came on the heels of stocks in Asia, which sold off after China pledged to abide by Zero covid policy It raised concerns about the world’s second largest economy.

Hong Kong Hang Seng Index (HSI) It fell 3.8%, topping losses in Asian markets and posting its worst daily drop in more than a month. Tech stock experienced Sharp selling, with Hang Seng Tech down 5.2%.

Mainland China standard Shanghai Composite Index (schcombe) The Shenzhen index, a component of its high-tech peer, fell more than 2%. Japan Nikki (N225) It opened lower, but reversed losses later in the day. It finished 0.7%.

in the currency markets, The Chinese yuan fell against the US dollar, hurting its value Lowest in one and a half years. It compensated for some losses in the afternoon to stand at 6.71 per US dollar.

In Europe, London FTSE 100 (UKX)The index fell more than 1%. Germany Dax (Dax)and France CAC 40 (CAC 40) It fell 1.4% and 1.6%, respectively. The pound, which lost 2% against the dollar on Thursday after the Bank of England predicted a hard landing for the British economy, fell to $1.23.

The losses came after the Dow plunged more than 1,100 points and the Standard & Poor’s fell 3.7% on Thursday, reversing Wednesday’s gains as investors worried about the impact of higher US interest rates and the risk of a recession.

Investors Asia is also tense after recent comments from China’s top leadership regarding its efforts to stem the spread of the coronavirus.

President Xi Jinping said all levels of government should “resolutely” adhere to the country’s non-proliferation policy. He stated this during Thursday’s meeting with the Standing Committee of the Politburo of the CPSU – the country’s highest decision-making body.

Xi said officials at all levels of the government should “resolutely fight back any words and deeds that slander, doubt and deny China’s COVID control policy.”

“This may dampen some hopes for any shift in Covid-19 policy, suggesting that the economic recovery will remain long and uneven,” Yeap Jun Rong, market analyst at financial services firm IG Group, wrote on Friday.

China’s policy not to spread the coronavirus has taken a heavy toll on the country’s economy. In April, the service sector giant contraction at the second most rapid pace It was recorded as the Covid lockdowns have hit businesses hard. China’s manufacturing sector also shrank last month, dragging down the economy.

Nicole Goodkind contributed to this report.

Cheryl Riley

“Amateur organizer. Wannabe beer evangelist. General web fan. Certified internet ninja. Avid reader.”

Global markets shook from Wall Street and China vowed no Covid

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