Dhara Ranasinghe’s perspective on the future.

If central bank gatherings were the focus of last week, this week will be about Omicron Covid and how it could affect markets.

Omicron and other social distancing laws were imposed by several countries, including New Zealand. This Tuesday delay meant for New Zealand’s planned international border reopening was delayed.

Many countries have been on high alert for days leading up to New Year and Christmas. This is because the new health crisis creates more uncertainty around the world and threatens the economic recovery.

Springboard market research firm said Monday that the UK’s top streets saw a 2.6% drop in shoppers over the weekend. The Euro zone’s consumer confidence data will soon be available.

Stocks are now on solider ground after Monday’s tumble. Asian shares celebrated Chinese efforts to rescue a distressed property sector. They rallied over 1% and snapped their two-day losing streak.

The rally was 2% and both European and U.S. stock options are still firm.

Note that investors have not flocked to safer-havens like gold and bonds, even though stocks plunged Monday. This could be due to many investors having liquidated positions over the past year. Other explanations are that sovereign bonds and other assets can be very expensive.

Aside from that, the Turkish lira, which was in a terrible state, rallied by 7% following a 25% historic recovery from its record lows. This happened after President Tayyip Erdogan revealed a plan to guarantee currency deposits local against fluctuations on the market.

Markets should be more informed by key developments on Tuesday

China Mobile (NYSE) will raise $8.8 billion in Shanghai Listing

The UK’s public debt totalled 17.4 Billion Pounds in November

Survey: Omicron-Lyons survey puts pressure on UK business

Japan’s Dec report reveals a new economic outlook.

Australia’s central bank is positive ahead of the QE decision

– German consumer morale darkens

Consumer confidence in December for the Eurozone

Federal Reserve Bank of Philadelphia releases Nonmanufacturing.

– US current account Q3 (Graphic: COVID and CESI, https://fingfx.thomsonreuters.com/gfx/mkt/akvezowkrpr/chart%20for%20MB.JPG)