Business news: Markets relax as WHO flags Omicron as less severe
By Hanna Paul
Updated
Markets settle down as the World Health Organization declares that the new coronavirus variant, that has kept the market frightened in the red since Friday, Omicron, is far less severe than expected. The new variant can be supressed by the currently available vaccines and its efficacy and severity as far lower than expected.
Wall Street stayed in the dumps as Nasdaq weighed on the index, through the struggles of one of their blue chips, Facebook. In Europe, the FTSE 100 gained over 1.5% and German DAX buyoed up almost 2.5%. In Asia, China's Shanghai Composite bourse and Japan's Nikkei traded lower, all stooping almost 0.5% while India's Mumbai Sensex, China's Hang Seng Index and Taiwan's TSEC 50 rose.
Currency markets in turmoil as traders worry about Omicron, with its volatility hovering over nine-month high. Tension rolled in from Wall Street as the US Federal Reserve’s (Fed) hawkish stance adds uncertainty to the existing Omicron threat.
Natural gas continues into its third straight session in the red after a sharp fall yesterday, while oil and other metals follow suit except gold, which ticked up 0.4%.
Marvell, Kroger and Toronto-Dominion Bank report results today.
Global politics and trade
US Fed’s hawkish stance tarnishing markets: The US Fed may taper its bond purchases and coronavirus pandemic support stimulus faster to tackle surging inflation while concerned about bleak economic recovery and the new variant now detected in the US looms over markets.
Facebook pulls Nasdaq and Wall Street into the dumps, US confirms first Omicron case: Meta Platforms, Inc down over 4.2%, after Reuters reported that the UK’s Competition and Markets Authority ordered the company to sell off the popular GIF website Giphy. Facebook purchased Giphy last year for $400m to grant its users the sole right to graphics interchange format files used to post short, animated images on social media sites.
What is your sentiment on UK100?
Oil, metal and renewables
Natural gas is the only major commodity in the red, dropping 1.6% in early trade along with oil that traded slightly lower. Silver loses 1.4% while gold perks up 0.43%.
Top business and economic news
- Turkey finance minister Lutfi Elvan resigns amid lira plunge
- ExxonMobil declares new goals for carbon emissions per barrel
- Pharma giant Moderna tumbles after patent dispute loss makes its Covid-19 vaccine vulnerable to infringement related suits
Markets today:
- Stocks: Wall Street in the red while European stocks shifted into the green today.
- Oil: Oil price down 0.6% while natural gas loses almost 1%.
- Gold: The yellow metal trades in the red today.
- Forex: US dollar retreats along with yields, risk mood to drive markets as US weekly jobless claims set to release today.
- Crypto: Bitcoin, ether, dogecoin, Shiba Inu fall.
What to watch today:
- Swiss retail sales expected to almost double: Estimated to be at 4.1%, from 2.5% last month.
- Japan Consumer Confidence Index: Reported 39.2, in line with the previous month.
- Spanish unemployment change:
- Italy unemployment for October expected to be softer.
- Euro area producer price index for October expected to be higher month-on-month and softer year-on-year.
- Marvell earnings: It is expected to be 0.3848 earnings per share.
- Other earnings: Other income releases expected today include Gamesa, Canadian Imperial Bank of Commerce, Dollar General and many smaller stocks like Numis.
Stock index movement around the world
Index | Country | Change | % Change | Level |
Australia ASX All Ordinaries | Australia | -20.90 | -0.28% | 7,536.90 |
Shanghai SE Composite Index | China | -4.16 | -0.12% | 3,572.73 |
Hang Seng | Hong Kong | +67.61 | +0.29% | 23,726.53 |
Mumbai Sensex | India | +410.42 | +0.71% | 58,095.21 |
Nikkei 225 | Japan | -182.25 | -0.65% | 27,753.37 |
Taiwan TSEC 50 Index | Taiwan | +138.89 | +0.79% | 17,724.88 |
US
Index | Country | Change | % Change | Level |
United States | -461.68 | -1.34% | 34,022.04 | |
United States | -53.96 | -1.18% | 4,513.04 | |
Brazil | -1,140.88 | -1.12% | 100,774.57 | |
Canada | -9.23 | -0.74% | 1,239.33 | |
Chile | -100.26 | -2.26% | 4,332.45 | |
IPC | Mexico | +308.44 | +0.62% | 50,007.16 |
Index | Country | Change | % Change | Level |
Australia ASX All Ordinaries | Australia | -21.70 | -0.29% | 7,536.10 |
Shanghai SE Composite Index | China | -3.05 | -0.09% | 3,573.84 |
Hang Seng | Hong Kong | +81.87 | +0.35% | 23,740.79 |
Mumbai Sensex | India | +426.90 | +0.74% | 58,111.69 |
Nikkei 225 | Japan | -182.25 | -0.65% | 27,753.37 |
Taiwan TSEC 50 Index | Taiwan | +138.89 | +0.79% | 17,724.88 |
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