What you need to know on Tuesday, November 30:
Fears receded on Monday after panic dominated financial markets on Friday as equity markets crashed following the announcement of a new variant of covid discovered in South Africa called Omicron. However, the market reaction may have been exacerbated by weak market conditions due to the Thanksgiving holiday in the US.
However, to this day, the market knows little about the new strain. However, Pfizer announced that it was testing its vaccine on a new variant, while Moderna announced that it would have a new vaccine ready by early 2022 if needed. In addition, the president of the United States, Joe Biden, held a press conference to update the country on the matter. Biden said the new strain is concerning but should not cause panic, adding that no lockdowns are required for now.
Stocks fell in Asia, but the European and US indices posted gains, reflecting the better mood. Yields on US government bonds rose, with the 10-year Treasury yielding 1.53% before the Wall Street close.
The member of the governing council of the European Central Bank (ECB), Pablo Hernández de Cos, said on Monday that European politicians aim to avoid premature tightening of monetary policy, repeating that high inflation could be expected to be transitory, despite being stronger and more persistent than anticipated. a few months ago. German inflation registered 6% year-on-year in November, according to preliminary estimates.
The dollar is mostly trading higher against its main rivals, although volatility was limited. EUR / USD is trading around 1.1260, while GBP / USD is below the 1.3300 threshold. The USD / CAD is at 1.2760, while the AUD / USD pair is close to the low of the year at 0.7105. Safe-haven currencies rebounded modestly, with the USD / JPY pair now at 113.80.
Gold declined modestly after flirting with the $ 1,800 level, now trading around $ 1,782 a troy ounce. Crude oil prices also fell, with a barrel of WTI currently at $ 70.40.
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