Tighter health restrictions in China put pressure on markets
The DAX is under pressure along with the other major indices in the wake of Wall Street and Asia. Equity markets are under pressure due to a resurgence of risk aversion that began on Friday on Wall Street after Jerome Powell opened the door to a 50 basis point rate hike on May 4, and which is escalating. is reinforced this weekend with the strengthening of health restrictions in China. Chinese authorities are now tackling a surge in Covid infections in the country’s capital, Beijing, by ordering mandatory testing in one part of the city and cordoning off certain areas.
These new restrictions obviously rekindle concerns about global growth, as the economy is already facing significant headwinds such as the war in Ukraine and the extremely rapid tightening of monetary policies around the world.
Many catalysts could keep market volatility high this week ahead of the highly anticipated Fed meeting next week. Operators will closely monitor the evolution of the health situation in China, as well as the publication of the first GDP estimates on both sides of the Atlantic and numerous company results, including those of GAFAM.