Last Friday, stock markets collapsed following the statement of a new covid variant discovered in South Africa named Omicron. Nevertheless, the market’s reaction may have been intensified by thin liquidity due to the Thanksgiving holiday in the US. Despite critical measures following the headline, over the weekend, news suggested that the new covid strain has already spread globally, with cases reported in Canada, Australia and several European countries.
The European Central Bank (ECB) governing council member Pablo Hernandez de Cos said this Monday that European policymakers aim to avoid the early monetary policy tightening, repeating that high inflation could be expected to be temporary, despite being stronger and more insistent than anticipated a few months ago.
On the data front, the EU published the November Economic Sentiment, which came as expected at 117.5, down from the previous 118.6. Germany published the preliminary estimate of its November Consumer Price Index, which came in higher than anticipated, up by 0.3% in the month and 6% YoY. The US published October Pending Home Sale, which rose 7.5%, and the November Dallas Fed Manufacturing Business Index that fell to 11.8 from 14.6 in the previous month.
Today Tuesday, the EU will publish November inflation figures, while the US will release November CB Consumer Confidence.
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