|

Coronavirus Update: Shanghai lockdown fears linger as Xi goes under control measures

Xi, China’s city of 13 million entered a seven-day period of ‘temporary control measures’ after 18 coronavirus cases were found in the city and in accordance with the country’s 'zero' policy.

City official Zhang Xuedong said that Xi’an would implement “seven-day temporary control measures”, which include:

Public entertainment venues including pubs, internet cafes and karaoke bars will shut from midnight on Wednesday.

Restaurants will not be allowed to serve diners indoors but may continue to offer takeaway services.

Schools are to start the summer holiday early and universities will seal off their campuses.

Meanwhile, fears of a probable lockdown in Shanghai city amplified after the authorities launched mass testing in nine districts, where covid cases were detected in the past two days.

The nine districts, as well as some areas in another three districts, will conduct two rounds of Covid mass testing between Tuesday and Thursday in order to “identify and prevent outbreak risks as early as possible,” the city government said in a statement published on its official WeChat account.

A Shanghai city official said that they “will suspend operations of KTV karaoke venues in the city, other entertainment venues can remain open.”

However, he said that the “gradual reopening of cinemas and concert venues from July 8 will still go ahead.”

Shanghai reported fresh two covid infections of quarantine, as of Wednesday.

Market reaction

Risk sentiment has taken a fresh hit on China's covid lockdown concerns, as the S&P 500 futures shaved-off early gains to now trade 0.28% on the day. USD/CNY, however, is falling 0.22% on the day to 6.7043, as of writing.

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

More from Dhwani Mehta
Share:

Editor's Picks

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress
The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.