Shanghai, China just went into lockdown to contain two Covid-19 variants. Oil price is still bid, as Chinese stocks sell. Is stagflation globally now entrenched?

Shanghai just went into lockdown, with a population of 26 million people, the Chinese authorities are trying to stem the outbreak by maintaining their so called zero policy for COVID-19 infections.  And you can understand why, with vaccine hesitancy rife through China and Hong Kong and a new stealth virus and the possibility that there is also a combination of Delta and Omicron, called Deltacron, would both spread like wildfire.  Which, from all reports Deltacron originated in Paris, France. where European governments threw out every restriction and allowed the flows of people back and forth.  Hence, these two, although Deltacron has still not been verified, variants, could pose a risk with global restrictions to return.   So, it is important to see China as not overreacting but as as possibility of things to come and if it isn't contained in the worlds 2nd largest economy that has low 3rd dose vaccine rates.  There will be more vaccine resistant mutations on the horizon. 

In the meantime, what needs also to be studied is the effect on the oil price as opposed to China now freezing its economy one again, which, should be in decline, rather than bid and we can see with the Chart above, the oil price is bid, with the Shanghai Composite (SSE) selling.   Noting the divergence between the two indexes reiterates the case that stagflation is truly upon the global economy; which is a mix of inflation and stagnated growth.