Monday 6th December 2021 : Markets in the red as Omicron spreads

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.36%, Shanghai Composite down 0.50%, Hang Seng up 2.15%, ASX up 0.17%
  • Commodities : Gold at $7245.10 (+0.05%), Silver at $1783.00 (-0.05%), Brent Oil at $22.39 (-0.40%), WTI Oil at $67.77 (+2.28%)
  • Rates : US 10-year yield at 1.377, UK 10-year yield at 0.767, Germany 10-year yield at -0.388

News & Data:

  • (USD) ISM Services PMI 69.1 vs 64.9 expected
  • (USD) Unemployment Rate 4.20% vs 4.50% expected
  • (USD) Non-Farm Employment Change 210K vs 553K expected
  • (USD) Average Hourly Earnings m/m 0.30% vs 0.40% expected
  • (CAD) Unemployment Rate 6.00% vs 6.60% expected
  • (CAD) Employment Change 153.7K vs 36.5K expected

Markets Update:

Asian stock markets are trading mixed on Monday, following the broadly negative cues from Wall Street on Friday, as concerns about the spread of the new coronavirus Omicron variant led to a cautious mood in the markets. The much weaker-than-expected U.S. job growth in November also raised some concerns the Federal Reserve is not expected to deviate from accelerating the tapering of its asset purchases. The World Health Organization said today that the new coronavirus variant, which was first spotted in South Africa, has now been detected in 38 countries.

The Japanese stock market is notably lower on Monday, giving up some of the gains in the previous session, with the Nikkei 225 staying above the 28,800 level, following the broadly negative cues from Wall Street on Friday, on renewed concerns about the pace of the global economic recovery amid the rapid spread of the new and possibly vaccine-resistant coronavirus Omicron variant. The Australian stock market is modestly lower in choppy trading following the broadly negative cues from Wall Street on Friday, with weakness in technology and materials stocks partially offset by strength in gold miners and energy stocks.

Oil prices climbed around 2% in early Asia trading hours after mostly falling last week on Covid uncertainty and the OPEC+ plan to increase output in January. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.344, rising sharply from levels around 96.1 in previous days.

 

Upcoming Events:

Monday, December 06, 2021

  • 11:30 AM GMT – (GBP) MPC Member Broadbent Speaks

Tuesday, December 07, 2021

  • Tentative – (CNY) Trade Balance
  • 03:30 AM GMT – (AUD) Cash Rate
  • 03:30 AM GMT – (AUD) RBA Rate Statement
  • 10:00 AM GMT – (EUR) ZEW Economic Sentiment
  • 10:00 AM GMT – (EUR) German ZEW Economic Sentiment

Wednesday, December 08, 2021

  • 03:00 PM GMT – (CAD) BOC Rate Statement
  • 03:00 PM GMT – (CAD) Overnight Rate
  • 03:00 PM GMT – (USD) JOLTS Job Openings
  • 03:30 PM GMT – (USD) Crude Oil Inventories
  • Tentative – (CAD) BOC Press Conference
  • 06:01 PM GMT – (USD) 10-y Bond Auction

Thursday, December 09, 2021

  • 01:30 PM GMT – (USD) Unemployment Claims
  • 06:01 PM GMT – (USD) 30-y Bond Auction
  • 07:00 PM GMT – (CAD) Gov Council Member Gravelle Speaks
  • 10:00 PM GMT – (AUD) RBA Gov Lowe Speaks

Friday, December 10, 2021

  • 01:30 PM GMT – (USD) CPI m/m
  • 01:30 PM GMT – (USD) Core CPI m/m
  • 03:00 PM GMT – (USD) Prelim UoM Consumer Sentiment