The Chinese have already resorted to community lockdowns as the country’s Covid cases hit an all-time high and the situation continues to worsen ahead of the weekend. Here’s a look at the trend of cases in Beijing over the past week (measured between 3 p.m. and 3 p.m. local time each day):
November 18 – 232 new local cases
November 21 – 316 new local cases
November 22 – 634 new local cases
November 23 – 913 new local cases
November 24 – 863 new local cases
Expect tighter restrictions to continue in China until they get the situation under control. In the meantime, any major talk about reopening or moving away from its zero-Covid policy will surely be put on hold. For the financial markets, this is not good news for oil at least.