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New coronavirus variant has world on edge

New coronavirus variant has world on edge

New coronavirus variant has world on edge

Lockdown fears have returned as a new coronavirus variant has been discovered in South Africa. This has caused concerns around the world of new lockdowns being imposed. Trading volumes were low on Thanksgiving on Thursday, and the fact that Friday is typically thought of as a holiday in the United States, a lack of liquidity could be a major contributor as well.

 

The new coronavirus variant that has been discovered in South Africa has led to an emergency session of the World Health Organization. The new B.1.1.529 strain is a concern, because it harbors a large number of mutations found in other variants, including the fast-spreading Delta variant that had exploded over most of the summer, and seems to be rapidly spreading.

 

It should be kept in the back of your mind that there has been no evidence yet, but health officials say they are worried that the mutating variant could dilute or perhaps even resist the efficacy of vaccines, which are only a temporary measure to begin with. It still a bit early to determine how dangerous this is going to be, but it seems as if the market is selling first and asking questions later.

Supply chain issues getting worse with Chinese lockdown

Supply chain issues getting worse with Chinese lockdown

China has continued to prioritize its extreme Covid zero policies, standing in the way of a full recovery for the shipping industry, as well as prolonging a crisis that has closed ports worldwide. In its attempts to keep coronavirus out of China, they continue to prohibit crude changes for foreign crews, as well as having imposed as much as a seven-week mandatory quarantine for returning Chinese seafarers. Vessels that have refreshed their crew elsewhere have to wait two weeks before they are allowed to port in China.

 

Shipowners and managers have had to reroute ships, the lien shipments and crew changes have just added to the supply chain crisis. China’s restrictions have caused massive knock-on effects, and the country shows no signs of relinquishing its policy. As China is the world’s biggest exporter, it is obviously a key hub for the shipping industry. This has caused quite a bit of a headache for traders around the world, as the recovery continues to be very “lumpy.”

Didi Global continues to struggle with Chinese regulators on their back

Didi Global continues to struggle with Chinese regulators on their back

Didi Global Inc. continues to slump after Chinese regulators were said to have asked the company to delist from US exchanges, perhaps in an attempt to continue the overall equity spat between the two countries. The ongoing regulatory probe into the country’s big tech companies will continue to cause problems for some of the biggest companies in China, perhaps having money flow out of that country as we have seen Chinese equities get hammered overall. Add to that the current housing problems in China, and it does set up for a potential timebomb for equity markets around the world.

 

The continuing crackdown by the Chinese Communist Party against many of its largest tech companies has been a major problem for most companies in that country, driving a wedge between traders and the government.

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