Data released this morning, Monday, July 5 from China showed that growth in the service sector in the second largest economy in the world slowed sharply in June to its lowest level in 14 months, according to Caixin PMI to 50.3 compared to 55.1 to come in less than Market expectations that it will decline to 54.8, recording the lowest growth rate since April 2020.

This decline in the services PMI was affected by the re-emergence of Covid 19 cases in southern China, which raised market fears that the Chinese economy will lose momentum in the third quarter of the year, despite the government’s quick response to contain the new wave of cases.