US Session (11/29/2021)

Stocks rose and bonds fell as global markets regained their composure, with investors rethinking their worst-case scenarios for the Omicron coronavirus strain.

The S&P 500 recovered from Friday's rout and erased its November losses in a broad-based rally. The Nasdaq 100 rose more than 2%, led by gains in technology behemoths such as Apple. and Microsoft.

The 10-year Treasury yields rose above 1.5%.

Biden warned Americans not to panic over the new strain, saying that vaccines, booster shots, and masking are the best ways to keep people safe. According to the company's top executive, Pfizer will know how well its COVID-19 vaccine holds up against Omicron in two to three weeks, and even in the worst-case scenario, the existing formula will retain some efficacy against the heavily mutated strain.

A forward-looking index of home purchases in the United States rose to a 10-month high in October, indicating steady housing demand. The pending home sales index of the National Association of Realtors increased 7.5% from the previous month. A major newswire survey of economists found that the median forecast was for a 1% increase.

Connecticut town bans 'For Sale' signs in six-month trial - Curbed

Asia Session (11/29/2021)

Most Asian stocks rose on Tuesday as traders examined the impact of the Omicron coronavirus strain and Federal Reserve Chair Powell's statements to measure the variant's policy implications.

- Japanese stocks outperformed and Hong Kong fell, but US and European futures rose. The S&P 500 erased its November losses, and the NASDAQ 100 more than recovered from Friday's rout, on bets that the biggest fears about Omicron are unfounded, despite the fact that much about it remains unknown.

- According to Powell, omicron poses hazards to both sides of the central bank's mandate of price stability and maximum employment. That did little to quell concerns that the strain might cause interest-rate hikes to be postponed.

- Treasuries have fallen, although they have kept much of the rise sparked by the virus. Swap markets predict two quarter-point Fed rate hikes in 2022, down from three before the omicron flare-up. The yen and dollar fell, while crude oil rose.

- Australia's third-quarter government investment will reduce GDP by 0.1%.


Europe Session (11/29/2021)

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.


Tuesday FX Option Expiries

EUR/USD: 1.1450 (EU1.2B), 1.1550 (EU1.04B), 1.1255 (EU1.03B)
USD/JPY: 115.00 ($2.83B), 113.80 ($1.55B), 116.00 ($760M)
USD/BRL: 5.4000 ($3.25B), 5.5000 ($1.29B), 5.5500 ($1.11B)
AUD/USD: 0.7350 (AUD473.5M)
USD/MXN: 20.60 ($310M)
USD/CNY: 6.4300 ($891M), 6.3900 ($552M), 6.3800 ($525M)
USD/CAD: 1.2600 ($388M)
GBP/USD: 1.4000 (GBP397.9M), 1.3775 (GBP319.4M)