The emerging negativity in global markets today is likely stemming from China.
Iron ore prices are down 9% on fears of a demand slowdown. China’s CSI energy index is down more than 5%, rebar is down 6% and the coal index is down 4.5%.
The PBOC met today but offered nothing new on policy, leaving the 1-year loan prime rate at 3.70% in a move that was expected.
From what I can see, there isn’t a clear catalyst for the industrial-led moves in China but for months there has been growing worry about the Chinese economy and this could simply be a continuation of that. At the moment, covid cases remain low with 36 reported today, most asymptomatic and none in Beijing.
This article was originally published by Forexlive.com. Read the original article here.