A number of China's most popular areas have put back into place business and travel restrictions that were initially lifted in response to cases doubling today, March 15th. This surge of the Omicron variant serves as the country's worst outbreak since 2020, which is saying something about the severity.
The biggest worry about these re-implemented restrictions is obviously the fact that China's massive economy will slow down and add to the struggles of the ongoing supply-chain issues. The outbreak is happening at a horrible time, given the fact that the Ukrainian crisis is also in full swing. Life is becoming increasingly more expensive.
An article by the Washington Post shares comments by Russ Mould, saying that "Investors may have become too complacent over the risks of lockdowns returning once again." Stockholders run the risk of having put too many eggs into the-pandemic-is-over basket, and may risk losing a lot of money to this outbreak and possibly more to come. COVID-19 is not quite finished, it seems.
https://www.washingtonpost.com/business/2022/03/15/stocks-market-oil-russia-china-ukraine/
Currently, stock market players are uncertain. The reason for it is the war in Ukraine. Every week, new economic sanctions are imposed against Russia, which has an impact on the stock market. China has not faced any sanctions. However, the situation can change because Russia and China are strategic partners.
ReplyDeleteHopefully we don't see a crash in the stock market, if investors lose to much. Having to deal with the aftermath of investors losing too much would be another problem for the US gov to deal with.
ReplyDeleteThe industries are still recovering from the pandemic and another lockdown can further disrupt the supply chains leading to additional shortages and not to mention the increased stress/pressure on medical professionals.
ReplyDeleteLets hope that investors are not getting too scared. Ones investments dies down, it will be harder to get the economy back up.
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