Moving to Plan B
Today's news headlines:
‘Boris moves to plan B to control Omicron spread amid MPs’ anger’. On Wednesday evening, Boris Johnson announced to the public new Coronavirus restrictions to curb the spread of the Omicron variant in the UK. Chief Medical Officer Chris Whitty warned the variant is spreading ‘extraordinarily fast’, with infections doubling every two to three days. Some MP’s expressed anger over the measures, which have been implemented earlier than anticipated, calling them a ‘diversionary tactic’ following reports of an alleged Downing Street Christmas party during last year’s lockdown. (Financial Times)
‘Emerging markets hit by abrupt slowdown in new foreign investment’. Last month, foreign investment flows into EM assets outside China fell negative for the first time since March 2020. Flows into stocks and bonds came to a halt as investors fear EM economies will have a poor recovery from the pandemic next year due to rising US interest rates, as well as the Omicron variant. (Financial Times)
Asian stocks were mixed overnight while US and European equity futures dipped. The Yuan reference rate was set weaker than expected while the US Dollar bounced and Euro dipped on a trade-weighted basis. Oil prices drifted higher, and bond yields fell.
Chinese Consumer Price Index (Nov): 2.3% (est. 2.8%)
US Initial Jobless Claims (Dec 4th): 1:30PM
US Wholesale Inventories (Oct): 3:00PM
Japanese Producer Price Index (Nov): 11:50PM
GBP/USD – 1.3205
GBP/EUR – 1.1665
EUR/USD – 1.1320
USD/CAD – 1.2670
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