- Most Asian equities rallied as traders wagered that the global recovery will withstand the new virus strain. Treasuries were stable after falling.
- The MSCI index of Asia pacific stocks climbed for the third day in a row, with Hong Kong leading the way. After the S&P 500 and the technology-heavy Nasdaq 100 extended their climb, US contracts fluctuated.
- China's central bank set the yuan's reference rate at a lower-than-expected level against the dollar, following the currency's surge to its highest level since 2018.
- The British pound has plunged to its lowest level this year as the omicron variant spreads.
- The dollar and crude oil rose, while the 10-year treasury yield remained above 1.50% and the yield curve steepened.
- Initial lab investigations indicate that a third dose of the Covid-19 vaccine may be required to neutralise the omicron variant, according to Pfizer and BioNTech. Pfizer's Chief Executive Officer Albert Bourla said the company will have data on how successfully its vaccine prevents omicron infections by the end of the year, and that a third booster dose will "do the job" in restoring high levels of protection.
