The global market is facing a downward trend. Following protests all around china against the country\’s stringent and increasingly zero covid policy. The protesters gathered at Liangma River on the 27th of November with their phone torchlights up. They protested the increasing cost of maintaining the zero covid policy. During this protest, It was gathered that the protest stemmed from the recent fire in Xinjiang Beijing China, where citizens were contained as regards the zero covid policy. This fire led to casualties and death.
How does this Protest Affect The Stock Market?
China has a peaceful and thriving economic stronghold. This protest has led to a slump in the market production level of great China. Oil fell by at least 3%. Investors however were more concerned that the progressing protests in china may result in a further downtrend. A day before the Protests kicked off in China. The Chinese bank in a move to raise the failing economy, cut in half, the required cash holding for citizens during the implementation of the zero covid policy in China. This move however was met with a lot of backlash and displeasure by the citizens. Analysts have taken a look at this move by the Chinese bank to prop up the failing economy and according to them, it may not have had much effect.
The Global market trend after the protest
According to one of the biggest market Monitors of all time. This is the reel on how the market trends showed up.
Asian markets were broadly lower. South Korea’s Kospi lost 1.2%, Japan’s Nikkei 225 (N225) shed 0.4%, and Australia’s S&P/ASX 200 also fell by 0.4% by the market’s close.
US stock futures — an indication of how markets are likely to open — fell, with Dow futures down 0.3%, or 108 points. Futures for the S&P 500 were down 0.5%, while futures for the Nasdaq dropped 0.6%.
US crude futures fell 2.7% to trade at $74.22 a barrel. Brent crude, the global oil benchmark, lost 2.9% to $81.25 per barrel.CNN.com
Market predictions on what China is likely to do to save its failing Economy
According to expert predictions. China is expected to put a stop to the zero covid policy to be able to maintain its market profits. According to Goldman Sachs, in a recent report released on Sunday stated that China Is likely to scrap its zero covid policy earlier than expected with some chances of a forced and disorderly exit.