There's just something about markets only seeing what they want to see. And when it comes to omicron risks in China, we're very much skirting around that again.
I don't see any bigger risk to the global recovery and inflation/central bank outlook other than China, at least to start the new year. And the headlines so far haven't convinced me of otherwise. The latest news on Tianjin here isn't piquing the interest of broader markets just yet, but it's something well worth keeping an eye out for.
China is the elephant in the room at the moment and it's not like they have gone unnoticed. Best be careful because when the elephant starts to kick and trash, things are going to get messy.
- China continues to struggle with covid as Xi'an lockdown continues
- China to only lift Xi'an lockdown when 'zero social transmission' is achieved
- Omicron might not be a big problem...with one gigantic exception
- Omicron outbreak in China could throw gasoline on the bonfire of bottlenecks
- Omicron optimism but what about inflation?
- Supply bottlenecks to continue well into 2022?