U.S. equity futures caused the market to rebound on Monday as investors prepared to wait a few weeks to see whether Omicron’s variant of the coronavirus would actually derail the economic recovery and some central bank tightening plans.
Oil prices rebounded more than $ 3 a barrel to recoup some of Friday’s shelling, while safe haven bonds and the yen lost ground as markets held to hope that the new worry variant would turn out to be “light”.
With Omicron already far from Canada and Australia, a South African doctor who had treated cases said symptoms of the virus have so far been mild.
“Another key difference is that there are now much higher vaccination rates around the world than when Delta emerged,” said Craig James, chief economist at CommSec Asset Manager.
“What the Omicron news highlights is the need for central banks and governments to take a cautious approach to removing support and economic stimulus.”
Trading was erratic on Monday, but there were signs of resilience as SandP 500 futures gained 1.0% and Nasdaq futures 1.2%. Futures
EUROSTOXX 50 rose 1.6%, while FTSE futures rose 1.3%.
The broader MSCI index of Asia-Pacific stocks outside Japan fell 0.1%, but found support ahead of 2021 low. Japan’s Nikkei fell 0.8 % as the country fell. It is decided to exclude foreigners to avoid the Omicron strain.
Bonds returned some of their substantial gains, Treasury futures down 13 ticks.S.Federal reserve and less tightening other central banks.The US plant survey is over Wednesday, in front of Friday Friday.
Yields on two-year Treasury bonds rose 0.56%, after falling 14 basis points on Friday in the largest drop since March of last year. Fed funds futures pushed the first rate hike by about a month.
The shift in expectations undermined the US dollar, benefiting safe havens of the Japanese yen and Swiss franc.
The dollar stabilized slightly at 113.65 yen on Monday, after declining 1.7% on Friday. The dollar index held at 96.190, after falling 0.7% on Friday.
The euro struggled again at $ 1.1276 after recovering from $ 1.120 late last week.
European Central Bank President Christine Lagarde bravely faced the latest viral alert, saying the euro area was better equipped to deal with the economic impact of a new wave of COVID19 infections or the Omicron variant.
The economic agenda is also loaded this week with Chinese manufacturing PMIs on Tuesday to offer another update on the health of the Asian giant. United States.
Fed Chair Jerome Powell and Treasury Secretary Janet Yellen talkearlier than Congress on Tuesday and Wednesday.
In commodity markets, oil fees bounced after struggling their biggest one-day drop given that April 2020 on Friday. [O/R] “The circulate all howeverensures the OPEC+ alliance will droop its scheduled growth for January at its assembly on 2 December,” wrote analyst at ANZ in a note.
“Such headwinds are the purposeit is been most effectiveprogressivelyelevating output in current months, no mattercall for rebounding strongly.”
Brent rebounded 4.2% to $75.eighty a barrel, at the same time as U.S. crude rose 5.1% to $71.61.
Gold has to this pointdiscovered little withinside themanner of secure haven call for, leaving it caught at $1,792 an ounce.[GOL/]
U.S. inventory futures, oil rall