Shopping for the Omicron dip By Reuters
© Reuters. People walk across Westminster Bridge after new measures were announced yesterday in London, Britain, Nov. 28, 2021 due to the variant of Omicron coronavirus. REUTERS / Tom Nicholson
A look at the day ahead from Danilo Masoni.
Sell first, get answers later. With stocks near their lifetime highs, Black Friday’s response to the new fast-spreading virus strain Omicron was hardly surprising.
But a weekend later, investors seem keen to buy the slump as markets balance the risks associated with what the WHO calls a “worrying variant”.
After their ninth-largest decline on Friday, crude oil price gains in Asia previously topped 5% and stock futures point to solid rallies in Europe and America.
A South African doctor said patients with Omicron have “very mild” symptoms and investment houses haven’t moved that much. Swiss credit For example, (SIX 🙂 made no portfolio changes and remained slightly overweight equities.
Perhaps more tellingly, retailers found north of $ 2 billion on Friday.
Of course there is uncertainty and that will likely result in volatile days leading up to the holiday season.
Understanding the severity of the variant “will take days to several weeks,” the WHO said. And vaccine maker BioNTech takes up to two weeks to find out if they can get by with the shot Pfizer (NYSE 🙂 needs to be revised.
As Omicron has expanded from Australia to the Netherlands and governments are banning travel and considering bans, markets can also count on central bankers to become more patient on their way to normalize interest rates.
Many speakers from the Federal Reserve and the European Central Bank are due for today. On Sunday, the ECB’s Lagarde said of risks to the recovery: “We now know our enemy and we know what action to take.”
Important developments that should give the markets more direction on Monday: * ECB spokesperson: Governor Lagarde, ECB board members AndreaEnria, Isabel Schnabel, Pentti Hakkarainen; ECB Vice-President Luis de Guindos * Consumer sentiment / inflation expectations in the euro area * German provisional CPI / HICP * Fed speakers: Chairman Jerome Powell, New York President John Williams, Governor Bowman * Emerging markets: Central Bank of Kenya meeting; Turkey Trade Balance and Banks NPL Rates (This story is being re-archived to correct the chart)
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