2 Minute Read by Reuters Staff (Reuters) – SHANGHAI, June 29 – On Tuesday, Chinese markets sank on fears that the highly contagious Delta virus type could stifle global economic recovery, as investors stayed away from major bets ahead of U.S. jobs data that could influence the Federal Reserve’s policy outlook. ** The CSI300 index fell 1.2 percent to 5,190.54, ending a five-day winning streak, while the Shanghai Composite Index dropped 0.9 percent to 3,573.18. ** Markets are jittery after the Federal Reserve surprised traders with a hawkish stance earlier this month, and investors have gone into a wait-and-see mode ahead of the June employment data in the United States. ** Fears of future lockdowns were stoked after reports of a more contagious Delta COVID-19 strain spreading across Asia and worldwide. ** The CSI300 financials index fell 1.3 percent, while the consumer staples index fell 1.8 percent. As authorities seek to consolidate a post-COVID-19 economic recovery, China’s central bank said on Monday that it will make its monetary policy flexible, targeted, and appropriate while keeping interbank liquidity reasonable.** The country’s economy has seen a rebound from the impact of the COVID-19 pandemic, with Chinese exporters racing ahead to fill global demand, bolstering the vast industry sector. ** “The PBOC’s net injection aimed to normalize liquidity between quarters, and the PBOC would likely return to draining short-term liquidity, while big inflows via the Stock Connect are unsustainable against a rising currency,” said Yan Kaiwen, an analyst with China Fortune Securities. ** After the business renewed a battery supply arrangement with Tesla Inc until 2025, shares of China’s biggest battery maker CATL hit an all-time high before finishing 3% higher. According to Refinitiv statistics, on Tuesday, investors sold 1.3 billion yuan ($201.31 million) worth of A-shares through the Stock Connect, which connects mainland China and Hong Kong. 6.4578 yuan (US dollar) = 6.4578 yuan (Chinese yuan Shanghai Newsroom contributed reporting, and Sherry Jacob-Phillips edited the piece. Continue reading