After 19 COVID deaths were reported Sunday, and the number of fatalities in China has continued to rise, with 39 deaths reported yesterday in the country's largest city, Shanghai, the Chinese government is tightening its already harsh grip on social restrictions, despite weeks of lockdowns already in effect.
Indeed, this morning, fears are escalating as mass coronavirus testing has begun in Beijing, prompting worries that the country's capitol city will be the next location to be locked down, following in the footsteps of its financial hub, Shanghai, which has been almost hermetically sealed since the beginning of April.
Among the many other worries pressuring markets on Monday, this added headwind has been weighing especially heavily on commodity markets, as the prospect of sharply lower demand for metals and oil from the world's second largest economy appears to be in the cards.
Iron ore trading in China has been particularly volatile today, on concerns of that falling demand from the world's leading iron ore importer. Though the price has been falling today, the technical picture indicates there's more upside ahead.
