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Equities and crude oil fell yesterday as investors worried about the impact of a surge in coronavirus cases in China on the global economy, just as the country eases its tough pandemic policies.
The benchmark Hang Seng stock index was down 0,8 percent, while China’s blue-chip CSI 300 index fell 0,4 percent as major cities across China were faced with a surge in Covid-19 cases.
In Europe, the benchmark Stoxx 600 was down 0,4 percent in thin trading.
The commodities-heavy FTSE 100 fell 0,6 percent, led by declines for oil majors Shell and BP, down 1,2 percent and 1,5 percent respectively.
In commodities markets Brent crude, the international oil benchmark, slid 1,9 percent while WTI, the US counterpart, fell 2,4 percent.
Yesterday’s declines come after China’s National Health Commission said it would drop quarantine requirements for inbound passengers from January 8, even as the country endures its worst Covid-19 outbreak.
The announcement was the latest easing of the government’s punishing zero-Covid-19 policies, which have hit economic growth.
A growing number of countries, including the US and Italy, have announced that they will require negative Covid-19 tests for air passengers traveling from China.
Hong Kong also further eased its pandemic restrictions on Wednesday, scrapping PCR tests upon arrival to the Asian financial hub, as well as limits on dining in restaurants. — Financial Times.
Online Reporter