Business & Investment

After the blow of Omicron, stocks and oil regain some calm

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Sydney — Asian markets were trying to regain some calm on Monday as the spread of Omicron variants in developed countries could upset economic recovery and some central bank tightening plans.

After the bombardment on Friday, crude oil prices also recovered some losses, but the yen in safe shelters rose and then took a breather.

New variants of concern have been found far away to Canada and Australia as more countries have imposed travel restrictions in an attempt to block them.

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The UK convened an emergency meeting of the G7 Health Minister on Monday to discuss the development of the virus, but a South African doctor who treated the case said Omicron’s symptoms were so far mild.

Rodrigo Catril, NAB’s market strategist, said:

“Pfizer expects to know within two weeks whether Omicron is resistant to the current vaccine. Others have suggested that it may take several weeks. Until then, the market. May remain unstable. “

Trading was volatile early on Monday, but there were signs of stability as S & P 500 futures rose 0.4% and NASDAQ futures rose 0.5%.

Both indices suffered the sharpest decline in Friday’s months, with travel and airline stocks hit particularly hard.

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Nikkei futures traded well at 28,370, but were still below Friday’s closing price of 28,751.

MSCI’s widest non-Japanese Asia Pacific stock index fell 0.2%, but few markets are still open.

Bonds returned some of their profits as Treasury futures fell 11 ticks. The market soared as investors delayed the start of rate hikes from the Federal Reserve Board and priced the risk of weakening tightening by several other central banks.

The two-year Treasury yield fell 14 basis points on Friday to 0.50%, the largest drop since March last year.

Changes in expectations have weakened the US dollar for the benefit of the safe haven of the Japanese yen and the Swiss franc.

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The dollar stabilized slightly at 113.71 yen at the beginning of Monday, after falling 1.7% on Friday. The dollar index also rose to 96.156 after a 0.7% fall on Friday.

The euro paused at $ 1.1283 after rising from $ 1.1203 at the end of last week.

European Central Bank Governor Christine Lagarde takes a brave look at the latest virus horrors, and the eurozone is better equipped to face a new wave of COVID-19 infection or the economic impact of Omicron variants. Said that it has.

This week’s economic diary is also busy on Tuesday at China’s manufacturing PMI, providing another up-to-date on the health of Asian giants. The factory USISM survey will be conducted on Wednesday prior to Friday’s salary.

Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen will speak before Congress on Tuesday and Wednesday.

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Crude oil prices bounced back in the commodity market after a one-day fall, the largest since Friday, April 2020.

“This move is almost assured that the OPEC + Alliance will suspend the increase scheduled for January at the December 2 meeting,” ANZ analysts said.

“Such headwinds are the reason for the gradual increase in production over the last few months, despite a significant recovery in demand.”

Brent rose 3.6% to $ 75.31 a barrel and US crude rose 4.0% to $ 70.85.

Gold has so far found little demand for safe shelters, remaining at $ 1,785 per ounce.

(Report by Wayne Cole, edited by Richard Poulin)

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After the blow of Omicron, stocks and oil regain some calm

https://financialpost.com/pmn/business-pmn/stocks-oil-regain-some-composure-after-omicron-battering After the blow of Omicron, stocks and oil regain some calm

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