Dow, Nasdaq 100 and FTSE Open Higher, Covid Variant Fears Remain the Dominant Market Force
Stock Markets – Prices and Charts
- Asia knocked lower, Nikkei down 1.6%.
- A strong open in Europe but will sentiment hold?
A positive start to the week after Friday’s heavy sell-off, but doubts remain if this is the start of a fresh move higher or if it is a short-term relief rebound. The main market driver, the new Covid-19 variant Omicron, remains and with every hour there are news flashes of cases being discovered around the globe. This will remain the case for days and weeks to come and will cap equity indices in the short- to medium-term.
The Nikkei fell 1.63% overnight, following last Friday’s 2.5% sell-off, pushed lower by news that Japan will close its borders to all foreign visitors from Tuesday, in an attempt to control the spread of the new Covid-19 variant.
The economic calendar is packed full of central bank speakers today and it will be interesting to see the views from members of the ECB and the Fed on the new Covid-19 variant, and if it will change their interest-rate hike projections. Treasury Secretary Janet Yellen Speaks at 15:00 GMT, ECB president Christine Lagarde speaks at 17:15 GMT, Fed chair Jerome Powell is speaking at 20:05 GMT while RBA Deputy governor Guy Debelle rounds off the day at 22:05 GMT.
For all market moving events, releases and speeches, see the DailyFX Calendar.
The charts below show today’s pull-back but the depth of Friday’s sell-off has scarred a range of markets. As noted before, this rebound may prove fleeting in the face of the new variant until news about symptoms and the spread is fully known, how effective current vaccines are , and how long it will take to produce a new, targeted vaccine. While all these questions remain, further upside is likely to be difficult.
Dow Jones Daily Price Chart – November 29, 2021
Nasdaq Daily Price Chart November 29, 2021
FTSE 100 Daily Price Chart November 29, 2021
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.