Sujata Rao gives a glimpse at what lies ahead.

The 0.6% increase in world stocks on Monday was not enough to make up Friday’s 2.2% drop, but that’s still under threat. Moderna CEO Stephane Bancel predicts that existing vaccines will not be able to compete with Omicron.

Prepared remarks suggest that Fed Chairman Jerome Powell would also inform U.S. lawmakers about this variant, which could threaten economic recovery. These comments already have sent the 10-year Treasury yields falling 7 basis points today.

The Asian session was a losing one, but Europe’s red ink is proving to be more profitable. German markets seem headed for 2% less. Futures indicate that Wall Street will suffer massive losses. The yen, Swiss Franc and oil prices are down more than $1.

Overshadowed by the rise in Chinese PMIs in official China, COVID headlines were dominated by factory activity increasing in November while services remained steady.

If you are in data monitoring mode, Euro zone inflation data might show big numbers, increasing from October’s 4.1%. The German November CPI was 5.2% in year-on-year on Monday, which is the highest level since 1992. This picture shows economic growth at risk, with a potential COVID return potentially exacerbating supply chains problems.

It is unknown what will happen next. Citi analysts claim that the Friday selloff erased investors’ bullish biases on the while European positioning was already neutralized in Europe.

It is possible to unwind more, and still have the ability to bounce.

Markets should be more informed by key developments on Tuesday

ECB will likely continue to buy bonds up through 2022. Could it resume PEPP? – Luis de Guindos, Vice President of the ECB

South Korea is a global trade hub and October saw the largest drop in factory production for nearly a quarter of a century.

Airline easyJet sees a softening of demand due to COVID clouds outlook

After Suncity, a Macau-based gambling company, is arrested its CEO and shares plummet

– Chief Technology Officer at Agrawal is given the reigns of Twitter (NYSE:).

Meeting of the -NATO foreign ministers in Latvia

-France flash CPI; Euro zone flash inflation

-Fed speakers : Jerome Powell is a witness before a Senate Banking Committee. New York President John Williams

-Emerging markets: Hungary central bank meets: Turkey Q3 GDP, India Q3 GDP

Monthly US House Prices/Chicago PMI

-Europe earnings; EasyJet, Wise,

-US earnings: Salesforce (NYSE:) Graphic: Euro zone inflation, https://fingfx.thomsonreuters.com/gfx/mkt/egpbkazodvq/Pasted%20image%201638220831318.png