December 7, 2022
Good morning,
Buy the rumor / Sell the news apparently still works … in China. The announcement of a widespread relaxation in Covid rules and restrictions last night resulted in their market closing sharply lower on the day. Recall the November optimism over an end to Covid-zero policies, which helped propel Chinese equities to the best month in decades. The sell-off in China has the usual ripple effects. European markets are off about a percent across the board, and on our shores, Futures are down about a half a percent. The S&P 500 wouldn’t seem to need another reason to fall, it’s been down 4 days in a row by its lonesome.
Be well,
Mike