Confinements have arrived in the Chinese capital.
Reuters reports that Beijing, the Chinese capital, on Monday ordered residents of an area in the COVID-hit Chaoyang District not to leave the area and not to leave their premises for non-essential reasons, the city reported. state television.
The heightened restrictions on movement in the area, as described by local authorities, about 1,400 by 1,000 meters in size, came as Chaoyang launched three rounds of COVID-19 tests after dozens of cases have been reported.
Many expected this, given the images emerging from various Chinese cities over the weekend of gated residential compounds. Also, news that emergency Covid testing was planned.
In light of the data and with Fed officials in their blackout period ahead of May’s FOMC meeting, more eyes will be watching China’s Covid situation, and this news is sure to dampen sentiment.
Crude prices are already feeling it, with WTI down 3% in early trading.