The numbers of new cases in Shanghai have been rising, bringing up renewed lockdown concerns and the associated negatives for China's economy.
On Monday:
If the numbers in Shangahi continue to deteriorate it's a 'risk' negative. Will also be a negative input for oil (demand falling the reasoning).
As I said yesterday:
- shutdowns are common in China with its 'zero' COVID policy. The intention is to minimise adverse health impacts. The cost is a steep one for economic activity.
- China seems to have 2020 on repeat.
