US stock futures, oil & FX markets stabilizing as Omicron worries subside
by SOURAV D | VIEW 895
On Monday, both US and European stock futures had recouped a lion’s share of their losses stomached on Friday over Omicron frets, as investors chose to remain optimistic that Omicron might not be strong enough to wreak havoc on global economy with the Chair of S.
African Medical Association (SAMC) having been quoted as saying that the patients being infected with a newly identified pandemic pathogen strain, B.1.1.529, showed very mild symptoms. Besides, a majority of infected demographics in S.
Africa had been reportedly aged below 40, while a large chunk of them was found to be unvaccinated. Amid such encouraging news over Omicron, investors seemingly had proffered themselves a wait-and-see approach, which in effect had spurred up equity markets and commodity markets across the globe on Monday’s late-afternoon Asia-Pacific trading hours, while currency markets were found to be stabilizing, too.
Global money markets stabilize as Omicron fears ease
Citing statistics, as of Monday’s late-afternoon Asia-Pacific trading hours, both US and UK crude oil futures’ prices jumped about $3 a barrel after Friday’s heavy shelling, trading at 3.03 per cent and 2.75 per cent respectively to $71.62 and $74.87 per barrel.
Among major US stock futures, S&P 500 futures gained 1.55 per cent to 4,642.97 and Dow futures jumped 1.54 per cent to 35,173.2, while Nasdaq futures soared 1.42 per cent to 16,241.4. Besides, in the Europe, Frankfurt’s DAX futures surged 1.24 per cent to 15,434.2 and London’s blue-chip FTSE 100 futures feathered 1.37 per cent higher to 7,137.9, while Madrid’s IBEX 35 futures climbed 1.44 per cent to 8,501.9.
On the FX front, Us Dollar Index (DXY) measured against a basket of six major currencies on an average added 0.15 per cent to 96.21 after plunging as much as 0.60 per cent in the previous session, while the bloc’s common currency euro was last trading 0.34 per cent lower to $1.1278 and safe-haven Japanese Yen shedding 0.26 per cent against the greenback to 113.67 yen per dollar.
Meanwhile, addressing to a wait-and-see approach among traders across the globe, a market strategist at NAB, Rodrigo Catril said, “There is a lot we don't know about Omicron, but markets have been forced to reassess the global growth outlook until we know more.
Pfizer expects to know within two weeks if Omicron is resistant to its current vaccine, others suggest it may take several weeks. Until then markets are likely to remain jittery”.