Chinese equities snap seven-day rally as virus concerns creep back in
Time for more stimulus?
The CSI 300 index closes lower by 0.6% while the Shanghai Composite closes lower by 0.7%, putting an end to the impressive seven-day rally in Chinese stocks over the past week.
The gap lower since last Monday has more or less been closed yesterday but the drop today also comes about as we see a rise in the number of cases as reported by the Hubei province earlier, though the bulk of it is due to a reclassification.
Nonetheless, the figure is enough to spook markets as we continue to see a more risk-off tone to start the European morning. Is it time for more stimulus from policymakers?