Covid-19 is back on the agenda for investors after last Friday’s brutal session across financial markets. Global stock indices plunged between 3% – 5% while the price of oil collapsed 10%. The new Omicron variant, first discovered in South Africa, is creating fresh panic across the globe, the likes of which have not been seen since the early part of the year. No doubt, any related headlines will take centre stage this week and will likely be the main driver of the key asset classes.
Elsewhere, the latest US non-farm payrolls report will be one of the highlights on the data front. It’s expected that 550,000 jobs will have been added to the US economy in the month of November with the unemployment rate hovering around the 4.5% level. Also on the economic calendar this week from the US: ISM manufacturing and services, pending home sales, and consumer confidence.
Fed chairman, Jay Powell, and Treasury Secretary, Janet Yellen will be testifying to Congress on Tuesday. With US monetary policy now beginning a shift back to somewhat more normal conditions, this week’s testimony may have more impact on markets than previously.
Have a good week.
Written by Viv Savani. 6:31am, November 29th 2021
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