Global stocks went down on Monday, U.S. equity futures went up, Bitcoin is on the rise, oil increased 4%, as investors are pondering the economic implications of Omicron, a new coronavirus strain, that put nations around the world on alert. Tightened border controls and other measures against the spreading of the virus have been put into place in many countries.
Indices & Global Markets
The Nikkei 225 (JP225) fell 1.63% and dropped to its lowest closing level in 6 weeks, triggered by the Japanese government’s announcement that it would close its borders to all foreign visitors from Tuesday, November 30, until they have more information about the new variant.
The Hang Seng Index (HK50) went down by about 1%. S&P 500 futures rose by about 0.7% indicating that the U.S. markets could open higher after a post-Thanksgiving holiday sharp decline on Friday.
Bitcoin is back at trading around $57,000 at the onset of the new trading week. A rise in price last week caused the crypto asset to close higher than many expected.
Bitcoin (BTCUSD) recovered from last week’s sell-off and price dip and started the week higher while most assets keep plummeting. The official warning from WHO against the new viral strain has caused stock exchanges around the world to plunge.
Bitcoin experienced a major fall on Friday, November 26 due to the announcement. Other cryptocurrencies dropped as well, including Ethereum which was trading below $4,000 on Friday.
Dow Jones Industrial Average (US30) futures were up 0.4% on Monday, while U.S. crude oil also seems to have partially recovered last week’s losses. It went up 4% and is trading at $71.57 a barrel.
Uncertainty around the new virus variant and Friday’s price plunge led OPEC+ to move two technical meetings later in the week. This change will give its committees more time to study the impact of the coronavirus latest strain. In the meeting, the group will also take into consideration the possible impact of a release of barrels from strategic petroleum reserves by the U.S. and other nations.
What to Watch out for this Week:
Fed Chair, Jerome Powell & New York Fed President, John Williams’ speeches
Bank of Japan Governor’s speech
Powell and Treasury Secretary, Janet Yellen in the U.S. Senate
Powell and Yellen front the House Financial Services Committee
Eurozone manufacturing PMIs
October U.S. NFP report