Free Trial

Reassessment Of Omicron Risk Stabilises Sentiment

CROSS ASSET

Markets unwind some of the moves seen during Friday's sharp risk sell-off in response to the initial reports surrounding the Omicron variant of the Covid-19 virus. The stabilisation in risk sentiment is aided by weekend developments on that front, with two South African health experts noting that the new variant has only been causing mild symptoms so far. Meanwhile, several vaccine developers noted that they are looking into implementing tweaks to their jabs, which would make them target the Omicron variant. Moderna said that they might release the adjusted vaccine as soon as early next year.

  • T-Notes have retreated from the off and last change hands -0-14+ at 130-23 as we await the Tokyo open. The contract has pulled back from Friday's peak of 131-10+ but is still quite far from shedding all gains registered on that day.
  • All three main U.S. e-mini futures trade in the green, albeit the Nikkei 225 futures are pointing to a lower open. S&P/ASX 200 has faltered, absorbing the market impetus from after Sydney hours Friday.
  • Cure oil recovers a tad after Friday's slump; WTI trades +$2.63 & Brent +$2.25 at typing. Worth noting that OPEC+ have moved two technical meetings to give their off'ls more time to assess risks around the Omicron variant. The cartel will meet later this week to discuss production policy.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.