Market Report: Are Omicron Worries Returning?

Market report

Status: 02.12.2021 8:15 a.m.

The specifications for the German leading index DAX are gloomy. The first case of infection with the new Omicron variant of the coronavirus in the USA led to panic sales in late trading on Wall Street.

The recovery phase on the German stock market is already a thing of the past. After the DAX was able to gain 2.5 percent to 15,473 points yesterday, things are likely to go downhill again today. Banks and brokers are currently estimating the 40 German standard values ​​1.1 percent lower at 15,297 points.

The background to the recent downward round on the German stock market are the poor specifications from the world’s leading stock exchange New York. After initial gains, the major US indices turned negative in the middle of the week, with a steep decline, especially in the last few minutes of trading.

First Omicron case in the US – Dow crashes

The Dow Jones index of standard values ​​closed 1.3 percent lower to 34,022 points. The technology-heavy Nasdaq was down 1.8 percent to 15,254 points. The broad S&P 500 lost 1.2 percent to 4513 points.

The appearance of the first Omikron case in the USA was responsible for the abrupt change in sentiment on the stock market. According to the CDC, a fully vaccinated person who returned from South Africa was found to have omicrons.

Nikkei closes slightly in the red

However, since the US stock market closed, the US futures have been on the up again. The future on the Dow Jones is currently trading around 0.6 percent higher. “The rebound in US futures is easing the pain of Asian equities,” said Jeffrey Halley, chief Asia Pacific analyst for currency broker Oanda.

In fact, the minus on the Tokyo stock exchange was limited. The Japanese leading index, the Nikkei, which comprises 225 stocks, closed 0.7 percent lower at 27,753 points.

Moderna: Omicron booster not before March

Meanwhile, statements by the vaccine manufacturer Moderna are causing disillusionment on the stock markets. According to its own information, the US pharmaceutical company could develop a targeted booster vaccination for Omikron from March and have it ready for an application for approval in the USA. “The Omikron-specific boosters will realistically not come before March and maybe more in the second quarter,” said Moderna President Stephen Hoge.

Just two days ago, Moderna boss Stéphane Bancel expressed the expectation that the current corona vaccines would be significantly less effective against the newly discovered Omikron variant, thus causing panic sales on the stock exchanges. In the meantime, however, there have been more optimistic assessments from BioNTech, for example.

Countermovement on the oil market, focus on OPEC +

The newly flared up Omicron fears yesterday also caused heavy losses in oil prices. Today the meeting of the oil cartel OPEC and its allies is on the agenda. In the market, it is expected that OPEC + will put the planned increase in oil production on hold for the time being.

In the oil market, a countermovement is emerging in early trading after the recent heavy losses. Brent crude oil rose 1.1 percent to $ 69.70 a barrel (159 liters). A barrel of the US WTI variety costs $ 66.40, also 1.1 percent more.

Gold under pressure again

Once again, gold does not live up to its reputation as a “safe haven”. The price of the troy ounce of gold is 0.3 percent to just under 1777 dollars. Since the appearance of the omicron variant, the yellow precious metal has lost around 100 dollars. The euro is trending sideways at $ 1.1322.

Lira crisis: Erdogan exchanges finance minister

In the foreign exchange market, the focus continues to be on the lira. The Turkish currency fell to a new record low yesterday. In the midst of the severe currency crisis, Turkish President Recep Tayyip Erdogan exchanged the finance minister. According to the official gazette, the office is to be held by the deputy finance minister Nureddin Nebati.

GM is increasing its forecast

The US automaker General Motors increased its forecast for the full fiscal year 2021. The profit should now amount to about 14 billion dollars, said CFO Paul Jacobson at a presentation. GM had previously forecast a range in pre-tax profit of $ 11.5 billion to $ 13.5 billion.

Is Air France-KLM postponing the capital increase?

According to insiders, the French-Dutch airline Air France-KLM is considering postponing its planned capital increase. The reason is travel restrictions imposed by governments to contain the Omikron variant of the coronavirus, said people familiar with the matter. Air France-KLM did not want to comment on this.

Susan Arnold takes over Disney executive chair

As the first woman in the 98-year history of the company, Susan Arnold becomes the new CEO of the US entertainment giant. Arnold, who has been a board member for 14 years, will succeed Bob Iger on December 31, Disney said. Iger, who resigned as CEO in 2020 after 15 years, will leave the company at the end of this month.

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