Buying an Omicron dip from Reuters

A look at the next day by Danilo Masoni.

Sell ​​first, then receive answers. With stocks around the peaks of life, the Black Friday reaction to the rapidly spreading new strain of the Omicron virus came as no surprise.

But a weekend later, investors are seen as too engaged to buy into the decline, as markets take a more balanced view of the risks associated with what the WHO called a “variant of concern”.

After the ninth biggest drop ever on Friday, gross price gains were ahead of 5% in Asia and stock futures indicate a strong rebound in Europe and America.

A South African doctor said patients with Omicron had “very mild” symptoms and the investment houses didn’t seem to move that much. Swiss credit (SIX :), for example, did not make any portfolio changes, and was slightly overweight in the shares.

Perhaps more telling is that retailers poured $ 2 billion north into U.S. stocks on Friday, setting the second-highest entry on record day, according to Vanda (NASDAQ 🙂 research data.

Of course, there are uncertainties and it will probably be a changeable day for the Christmas shopping season.

The WHO said understanding the level of severity of the variant “will take days or weeks”. And the vaccine maker BioNTech needs two weeks to figure out whether to make the shot Pfizer (NYSE 🙂 needs to be upgraded.

So while Omicron has expanded from Australia to the Netherlands and governments are banning travel and reducing blockages, markets can also bet on central banks to be more patient on the way to normalizing rates.

There are many speakers from the Federal Reserve and the European Central Bank for today. Speaking on Sunday about the dangers of a recovery, the ECB’s Lagard said: “Now we know our enemy and what action to take.”

Key developments that need to give more direction to the markets on Monday: * ECB speakers: Governor Lagarde, Andrea Enria, Isabel Schnabel, Pentti Hakkarainen ECB board members; Luis de Guindos, Vice-President of the ECB * Eurozone consumer sentiment / inflation expectations * Preliminary German CPI / HICP * Faith speakers: President Jerome Powell, President of New YorkJohn Williams, Governor Bowman * Emerging markets: brings together the central bank of Kenya; Turkey’s trade balance and bank’s NPL ratios (this story is reunited to fix the chart)