FAST FIVE: Futures, Crude, Crypto, Yuan Tumble Amid Violent China Covid Protests As Goldman Warns Of "Disorderly" Early Exit From Covid Zero
Futures, Crude, Crypto, Yuan Tumble Amid Violent China Covid Protests As Goldman Warns Of “Disorderly” Early Exit From Covid Zero It finally happened.
As reported earlier, protests spread over the weekend as citizens in major cities including Beijing and Shanghai took to the streets to express their anger on the nation's Covid controls in a rare show of defiance which some believe raises the threat of a government crackdown, prompting investors to re-think investment plans after jumping back in on reopening hopes.
While the economic impact may be more limited if the PBOC offsets it with a partial rollover of maturing MLF loans next month, the significance of the RRR cut lies in its signal value: policymakers are attentive to incoming data and the central bank will likely keep monetary policy accommodative in the face of a challenging growth outlook in the next quarter or two.
Just as ironically, Chinese assets rallied in November as directives for a less-restrictive pandemic approach, coupled with strong support for the property sector, gave investors confidence that the worst is well behind.
Finally, and not like anyone will be surprised by this, crypto which now tumbles to any news, both good and bad, tumbled right on cue, with bitoin sliding from the $16,500 level right back down to $16,000, as even the faintest attempt to reverse the relentless selling of 2022 is promptly crushed.