Be humble or be humbled.
-
China and Hong Kong Stocks Plummet, Yields Soar
While the World Health Organization debates about downgrading Covid from a pandemic, the rise China and Hong Kong cases is striking. A lockdown in Shenzhen and restrictions in Shanghai, coupled with a record fine by PBOC officials on Tencent drove local stocks sharply lower. China's CSI 300 fell 3% and a measure of Chinese stocks that trade in HK plunged more than 7%. The Hang Seng itself dropped 5%. Covid in China and Hong Kong adds to the risk of more supply chain disruptions. Europe's Stoxx 600 is up about 1.6%, led by financials and industrials. US futures are 0.5%-0.7% better. Bond markets are sliding. Yields ... (full story)