Banks Downgrade Economic Forecast for China
August 9, 2021
Fears of rising COVID-19 Delta variant cases have the market selling off this morning. China has imposed new restrictions and the concerns that energy demand will be impacted has traders taking profits and more adding to short positions.
JPMorgan Chase & Co, and Goldman Sachs Group Inc., both downgraded their forecast for China’s economic outlook due to the rise in new cases of the delta variant.
The positive jobs number on Friday doesn’t appear to be enough to keep the bears away as the selling pressure continues because of COVID fears. The US Department of Labor reported Friday morning the number of nonfarm payrolls increased slightly more than expected reaching 943,000 jobs in July after rising 938,000 in June.
The Baker Hughes Rig Count had oil rigs up 2 to a total of 387 crude oil rigs. The US has 211 more oil rigs than last year at this time.
Despite the weak outlook for demand in Asia, there are some improved metrics in the US where roads have remained busy. Vehicle miles traveled on highways in the week to August 1 match the similar week in 2019, before the pandemic hit, according to the Department of Transportation.