Market Mind: Like Black Friday.

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File photo: On November 27, 2020, in Zurich, Switzerland, a special discount on Black Friday sale will be offered at the fashion store as the epidemic of coronavirus disease (COVID-19) continues. REUTERS / Arnd Wiegmann / File Photo

November 26, 2021

(Reuters) – Look at the day before Dhara Ranasinghe.

COVID-19 was concerned that investors had pushed down the list of biggest concerns in recent months, but as new variants spread throughout South Africa, it soared to number one.

Asian equities other than Japan have fallen by more than 2 percent, Western equity futures have fallen sharply, crude oil prices have fallen by about 3.5 percent, the safe yen has risen by about three-quarters, and US Treasury yields have risen. It fell by about 10 basis points. ..

The low liquidity following Thursday’s US Thanksgiving holiday can certainly exacerbate price volatility, but Friday’s overnight headlines have undoubtedly surprised the market.

Little is known about the mutants detected in South Africa, Botswana, and Hong Kong, but scientists have an unusual combination of mutations that may be able to avoid an immune response or increase infectivity. I think.

The news comes from Europe fighting the already resurrected outbreak of COVID-19 and creating new restrictions that bring uncertainty to the short-term economic outlook.

This poses new challenges for central banks, such as the European Central Bank, which have just begun to admit that inflation has been pushing up longer than expected.

And in addition to the latest COVID headings, there are other reasons for anxiety. The Fed’s expectations for rate hikes have generally risen, Ukraine / Russia tensions with growing geopolitical impacts, and a real estate-led slowdown in China.

In emerging markets, Turkey is currently in the spotlight on South Africa as Rand broke through the 16.00 level against the dollar for the first time this year.

Key developments that need to provide more direction to the Friday market:

– ECB Speaker: ECB President Christine Lagarde

– BOE Chief Economist Huw Pill talks

– Canada’s survey of business conditions in the fourth quarter

– Prime Minister Kishida urges companies to raise wages by more than 3%

– Government-inherited China Evergrande Soccer Stadium-Source

– China urges Diddy to remove data security concerns from the US – Bloomberg News A new Covid variant rattles the market, https: //fingfx.thomsonreuters.com/gfx/mkt/zgpomkobopd/MB2611.png

(Report by Dhara Ranasinghe, edited by Karin Strohecker)

Market Mind: Like Black Friday

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