Although strong data from the Chinese economy support the risk appetite in global markets, the pessimism created by the Russia-Ukraine war continues.
While investors are more pessimistic about the impact of the war on stock markets, strong signals of growth from China are limiting losses in Asian stocks. In the first two months of the year, industrial production in China grew by 7.5 percent, while retail sales grew by 6.7 percent, exceeding the 3 percent expectation.
The Hong Kong Hang Seng index fell by more than 6 percent. Futures point to a partial recovery as the Nasdaq 100 approaches bear market territory for the first time since the start of the coronavirus pandemic. The US 10-year Treasury yield is up to two basis points at 2.16%. The Bloomberg Dollar Index fell 0.1 percent to 1,205 points.
The world’s largest oil importer, China’s declaration of Covid-related quarantine measures and efforts for a diplomatic solution to the Russia-Ukraine war accelerate the decline in oil prices. Brent oil price for May delivery, which fell 5.1% on Monday, decreased by 4.1% to $102.6 today. The price of US-type crude oil also fell by 4.1 percent, after a 5.8 percent decline, to $98.8.