First Omicron strain death increased uncertainty about further global economic recovery
Meanwhile, the World Health Organization said Monday that Omicron poses a “very high” global risk because there is evidence that it is not vaccine-resistant.
European Union foreign ministers said Monday that any Russian aggression against Ukraine would have serious economic and political consequences for Russia.
Crude oil prices, which increased about 8% last week, fell because of news of the first death in Britain from the Omicron variant and WHO warnings of a new global risk. With restrictions imposed in Europe and Asia, it is clear that Omicron will seriously hamper oil demand, especially before the holidays. Nevertheless, OPEC+ raised its global oil demand forecast for the first quarter of 2022.
Asian stock indices are falling because of new Omicron risks. Hong Kong’s Hang Seng Index (HK50) decreased by 1.36%, also driven by lingering concerns about the health of China’s real estate sector. Japan’s Nikkei 225 stock index (JP225) decreased by 0.73%, and Australia’s ASX 200 index (AU200) remained unchanged.
On Tuesday, the Asian Development Bank lowered its growth forecast for developing Asia this year to reflect risks and uncertainties stemming from a variant of the Omicron coronavirus. The Bank of Japan offered to bring a total of $97 billion to the markets by buying temporary government bonds over two days to counter rising short-term interest rates.
S&P 500 (F) (US500) 4,668.97 −43.05 (−0.91%)
Dow Jones (US30) 35,650.95 −320.04 (−0.89%)
DAX (DE40) 15,621.72 −1.59 (−0.01%)
FTSE 100 (UK100) 7,231.44 −60.34 (−0.83%)
USD Index 96.35 +0.26 (+0.27%)
News feed for: 2023.07.04
- Japan Industrial Production (m/m) at 06:30 (GMT+2);
- UK Average Earnings Index (m/m) at 09:00 (GMT+2);
- UK Claimant Count Change (m/m) at 09:00 (GMT+2);
- UK Unemployment Rate (m/m) at 09:00 (GMT+2);
- Eurozone Industrial Production (m/m) at 12:00 (GMT+2);
- US Producer Price Index (m/m) at 15:30 (GMT+2);
- New Zealand RBNZ Gov Orr’s Speech at 21:00 (GMT+2).
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
