about 1 year ago • 1 min
China’s daily Covid infections reached an all-time high, according to data out on Friday.
What does this mean?
Just weeks after unveiling a new, softer-touch Covid policy, China's government watched the country's infection count shoot to an all-time high late last week. Now the country’s freshly announced plans are undergoing an unexpected, real-life stress test, and the whole world’s watching to see whether Xi’s nerve buckles under the weight of 30,000 daily cases. Investors are keeping an especially cautious eye out: after all, the prospect of an end to economy-killing lockdowns gave Chinese stocks a much-needed boost – but any sudden U-turn could sink them again.
Why should I care?
For markets: Silver-black lining.
China’s the world’s biggest oil importer, so it’s safe to say the state of the dragon economy’s pretty important to black gold’s price. And with the West’s chances of side-stepping a recession dwindling, China’s fate could have an even bigger impact on the price of oil from here on out. So extended lockdowns might hamstring the nation’s economy and rock Chinese stocks, but the knock-on drop in oil prices would be a godsend for countries where sky-high energy bills are emptying household coffers.
For you personally: Skates on.
Apple will be hoping there are enough iPhones on store shelves to scrape through the busy selling season, but supply problems have been a lingering thorn in the firm’s side. The company’s already chopped production targets twice because of lockdown-driven problems at its supplier’s Zhengzhou factory – and with ugly scenes recently unfolding at the hub, it wouldn’t come as a bolt from the blue if its supplier Foxconn missed quotas yet again. In other words, you might want to get your skates on if a loved one fancies an iPhone this Christmas.
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