China Covid: Protests in major cities across the country make for a risk-off theme

In China, large violent, anti-government anti-lockdown protests have broken out in major Chinese cities. In the cities of Shanghai, Wuhan, Guangzhou and Beijing protesters were heard chanting ''down with XI''.

The BBC wrote that videos posted on social media appear to show hundreds of Wuhan residents taking to the streets, with some protesters pictured knocking down barricades and smashing metal gates. There are reports that the police were using billy clubs and gas against protesters. 

In spite of the stringent measures, China's case numbers last week hit all-time records since the pandemic began. Such a risk-off theme could mean a stronger US dollar in the open which could be a weight for the yuan and the Australian Dollar and could be prompting investors to shift toward haven assets such as the yen and Treasuries. Rising risks may also weaken demand for stocks.