China's premier stock market the CSI 300 suffered a 4.9% fall today following the Chinese government's decision to begin mass testing residents in the nation's capital.

A spike in Covid-19 infections has led to a rapid response from the government, but investors are concerned that Beijing will see similar containment protocols that Shanghai has had – impacting global trade and China's own productivity.

The US felt the sting of China's downturn; initially on Friday with the Dow Jones losing almost 1000 points (2.8%) - the biggest drop since October 2020. The S&P and Nasdaq fared similarly and losses have continued today. The Dow is 0.4% down, the S&P 500 0.62%, but defying the odds is the Nasdaq up 0.29% following news of a bid by Elon Musk to purchase Twitter.

Investors will be keeping an eye on Musk's move into the social media sphere, but more attention is on the Federal Reserve – amongst other central banks – and how soon they will raise interest rates and by how much. Inflation is still going, despite 2021's insistance of it being transitory, so action must be taken. Banks such as the Bank of England and European Central Bank are aiming for three .25 point rises this year, and maybe the Fed will do the same, but with economic growth fragile and Covid not yet seen off, there's a lot that could yet happen.