- A sense of calm returned to global markets, with US equity futures & Treasury yields gaining alongside European stocks, as investors reviewed their worst-case scenarios for the incoming omicron virus variant.
- Moderna surged more than 9% in pre-market trade after stating a new vaccine to combat the omicron strain might be ready early next year, if needed. The 10-year treasury rate surged beyond 1.50%, while WTI oil rebounded back above $71 a barrel. The euro fell, while the dollar index remained stable.
- Investors are attempting to determine if the omicron flareup will be a transient fright from which markets will recover, or a more serious setback to the global economic recovery. Much remains unknown about the new strain: South African experts claim it has only minor symptoms so far, despite the fact that it looks to be more transmissible, but the WHO warns it might spark future covid-19 outbreaks with dire implications.
- Australia's PM Morrison: Further relaxing of border controls will be put on hold.
- ECB's Schnabel: It would be a mistake to hike interest rates too soon.
- ECB's Schnabel: The European Central Bank expects inflation to peak in November, declining slowly over the next year.
- Japan's PM Kishida: All foreign visitors will be denied entry into Japan from November 30th.
