China’s GDP figures came in high, but analysts are expecting a sharp dip for Q2 as harsh lockdowns continue.
- Asia stocks fell Monday morning as Chinese GDP figures for the first quarter came in higher than expected at 4.8%. The Nikkei 225 fell 1.5%, Topix fell 1.22% and the Kospi dipped 0.5%.
- However, analysts are sounding the alarm over China’s harsh lockdowns imposed across 45 states, warning of serious repercussions for the global economy. China’s second-quarter GDP is expected to fall and the risk of a recession in the world’s second-largest economy is rising.
- In the Forex market, the US dollar rose against all major currencies last week, as the US Dollar Index (DXY) rose to a near-two-year high just above 100.75 in a continuation of its recent rally. The British pound, however, saw small gains.
- The Canadian dollar fell 0.35% against the US dollar and the Kiwi fell 1.1%, despite a 50-basis point boost from the Bank of Canada and the Reserve Bank of New Zealand, respectively. The Japanese yen remains the weakest currency.
The yen is a popular asset during turbulent times.
- Oil prices rose in the Asian session due to weak crude production by OPEC.
- Inflation remains at a 40-year-high, though expectations are more positive. Still, central banks such as the Monetary Authority of Singapore are continuing to tighten monetary policy and raise interest rates, driving demand for safe-haven assets like gold.
- Gold rose for the second consecutive week by 0.6% to $1,985.49.
- Today is a bank holiday in the UK and many European countries, so liquidity is expected to be lower than usual.
- Daily new coronavirus cases globally fell last week for the fourth consecutive week.
- It is estimated that 64.8% of the world’s population has received at least one dose of a coronavirus vaccination, while approximately 6.4% of the global population is known to have contracted the virus at some stage.
- Total confirmed new coronavirus cases worldwide stand at over 504 million. An estimated 0.078% of the world’s population has died from COVID-19.
- The rate of new coronavirus infections appears to now be increasing only in Barbados, Bhutan, Canada, China, and Taiwan.