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Italy
Italy’s final GDP for the third quarter was +2.6 percent, compared to +2.6 percent in the previous quarter.
Istat’s most recent statistics – 30 November 2021 • GDP +3.8 percent versus +3.8 percent y/y preliminary
The source’s release was somewhat delayed. The early estimates remain unchanged, confirming a minor increase in activity in the previous quarter. That said, with the prospect of omicron, all of that is out the window.
Europe
European shares are off to a shaky morning as risk sentiment remains cautious.
The Stoxx 600 index has dropped to its lowest level in over seven weeks • Eurostoxx -1.0 percent
Germany DAX is down 1.2 percent.
CAC 40 -1.4 percent in France
FTSE 100 -1.0 percent
Spain’s IBEX fell 1.7 percent.
Following a strong performance yesterday, European stocks returned to Friday’s anxious attitude as Moderna’s CEO stated earlier that vaccinations may be much less effective against the omicron variety.
Risk trades, in general, are continuing under pressure, with 10-year Treasury rates down 7.5 basis points to 1.454 percent and oil currently down 3% to $67.80.
For the time being, USD/JPY is avoiding a dip below 113.00, while USD/CAD is approaching the 1.2800 level. The aussie and kiwi are also under pressure, although they are holding at important technical levels, as previously said.
Japan
Japan’s overall spending for the upcoming fiscal year is expected to set a new high.
According to Kyodo News, based on the draught budget, overall spending is anticipated to reach 107 trillion, a record high.
That is hardly surprising given Kishida’s announcement earlier this month of a massive 79 trillion stimulus programme to tackle the pandemic’s impact.
Japan certifies the first occurrence of the omicron variety. The preceding example involves a man in his 30s who has arrived from Namibia.
Don’t be shocked if additional nations disclose results of the variation, as delta has already set a precedent.
The question now is whether omicron has been actively circulating long enough to cause a significant increase in infections (that is yet undetected maybe)
What a short turnaround in the day, and we’re back to dread and terror.
But bear in mind that there are still a lot of unknowns about the omicron version, so while markets are risk-averse right now, things might not be that awful if we have more information in a few weeks.
For one thing, most vaccine manufacturers appear to be optimistic that they will be able to develop an effective vaccine within “months.” Second, we don’t know if omicron is a much worse version of COVID-19 than other forms.
Friday’s lack of liquidity aided in exaggerating market movements, and as a result, the dread that is currently living among market players is a little louder than it truly is.