• Loading stock data...
 Santa rally vs the Grinch

People wait in long lines to be tested for COVID-19 in Washington, U.S., December 20, 2021. REUTERS/Evelyn Hockstein

Santa rally vs the Grinch

A look at the day ahead from Dhara Ranasinghe.

If last week was all about central bank gatherings, then this week is all about how the fast-spreading Omicron Covid variant could deprive markets of any festive cheer.

New Zealand on Tuesday delayed the planned reopening of its international border because of Omicron, as several other countries reimposed social distancing measures.

Many nations are on high alert just days before Christmas and New Year celebrations, as the latest health crisis renews uncertainty in world markets and deals a fresh blow to the global economic recovery.

The number of shoppers on Britain’s high streets for instance fell by 2.6% over the weekend, market research company Springboard said on Monday. Euro zone consumer confidence data out later will likely be watched closely.

Stocks, which tumbled on Monday, appear on firmer ground for now. Asian shares cheered Chinese efforts to shore up a troubled property sector, rallying over 1% (.MIAPJ0000PUS), snapping a two-day losing streak.

Japan’s Nikkei rallied 2%, European and U.S. stock futures are firm.

And note that even as stocks tumbled on Monday, investors did not flock to traditional safe-havens such as bonds and gold. That might be because many investors have wound up positions for the year. Another explanation, say others, is that assets such as sovereign bonds are expensive.

Elsewhere, the battered Turkish lira rallied 7%, after a historic 25% recovery from record lows, as President Tayyip Erdogan unveiled a plan he said would guarantee local currency deposits against market fluctuations. read more

Key developments that should provide more direction to markets on Tuesday:

– China Mobile to raise up to $8.8 bln in Shanghai listing read more

– UK public borrowing totals 17.4 billion pounds in November read more

– UK businesses feel pressure from Omicron – Lloyds survey read more

– Japan upgrades economic view for first time in 17 months in Dec report read more

– Australia’s central bank upbeat on outlook ahead of QE decision read more

– German consumer morale darkens read more

– Euro zone flash consumer confidence December

– Federal Reserve Bank of Philadelphia issues Nonmanufacturing – – Business Outlook Survey for December 1330 GMT

– US current account Q3

COVID and CESI
COVID and CESI

Reporting by Dhara Ranasinghe; Editing by Saikat Chatterjee

Our Standards: The Thomson Reuters Trust Principles.

This article was originally published by Reuters.

Avatar

Global business magazine

Related post

Leave a Reply

Your email address will not be published. Required fields are marked *