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Business news: Markets relax as WHO flags Omicron as less severe

By Hanna Paul


Updated

Microscopic view of the delta variant of Covid-19
Microscopic view of the delta variant of Covid-19 - Photo: Shutterstock

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.

(Photo:Shutterstock)

US Federal Reserve turns hawkish in reaction to aggressive inflation, plans to ease down stimulus plan faster despite omicron scare and poor economic recovery - Photo: Shutterstock

(Photo:Shutterstock)

Turkey's finance minister resigns - Photo: Shutterstock

(Photo:Shutterstock)

Exxonmobil - Photo: Shutterstock

(Photo:Shutterstock)

US Federal Reserve turns hawkish in reaction to aggressive inflation, plans to ease down stimulus plan faster despite omicron scare and poor economic recovery - Photo: Shutterstock

(Photo:Shutterstock)

Turkey's finance minister resigns - Photo: Shutterstock

(Photo:Shutterstock)

Exxonmobil - Photo: Shutterstock

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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.

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DE40

16,253.30 Price
+0.430% 1D Chg, %
Long position overnight fee -0.0221%
Short position overnight fee -0.0001%
Overnight fee time 22:00 (UTC)
Spread 1.5

HK50

17,035.50 Price
+0.360% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0044%
Overnight fee time 22:00 (UTC)
Spread 5.0

US500

4,567.60 Price
+0.280% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.8

US100

16,045.50 Price
+0.270% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

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

Dow Jones Industrial Average

United States

-461.68

-1.34%

34,022.04

S&P 500 INDEX

United States

-53.96

-1.18%

4,513.04

Brazil Bovespa Stock Index

Brazil

-1,140.88

-1.12%

100,774.57

Canada S&P/TSX 60

Canada

-9.23

-0.74%

1,239.33

Santiago Index IPSA

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

Read More: 8*8 (EGHT) stock price drops on plan to acquire Fuze

Markets in this article

XOM
Exxon Mobil Corp (Extended Hours)
103.57 USD
0.85 +0.830%
XOM
Exxon Mobil Corp (Extended Hours)
103.57 USD
0.85 +0.830%
META
Meta Platforms Inc (Extended Hours)
333.36 USD
0.74 +0.220%
UK100
UK 100
7493.6 USD
65.4 +0.880%
DE40
Germany 40
16253.3 USD
70.1 +0.430%

Related topics

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

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