The World Health Organization (WHO) recognized the new Covid strain, first referred to as lineage B.1.1.529 and now named omicron, as a variant of concern. WHO said it will take weeks to understand how the variant may affect diagnostics, therapeutics and vaccines. News of the South African variant sent shockwaves throughout financial markets in thin post Thanksgiving Day trade. Oil fell over 10% on the news with fear of economy’s shutting down again. omicron Omicron is the 15th letter of … Continue reading “WHO Names New COVID Variant of Concern ‘Omicron’”
Oil Futures Collapse Over 13% on South African Variant Risk Asset Selling
Stock markets and commodities markets sold off hard on Friday due to a new coronavirus variant identified in South Africa. The selling intensified with some countries including the UK, Singapore and Israel curbing travel from South Africa and other neighboring countries. We had seen a dead cat bounce in WTI and Brent after the SPR coordinated release plans. The new COVID-19 variant contains significantly more mutations than others raised concerns of further lockdowns and travel restrictions that could weigh heavily … Continue reading “Oil Futures Collapse Over 13% on South African Variant Risk Asset Selling”
Germany SPD and CDU Battle To Become Largest Party in Bundestag After Angela Merkel Era
Centre-left SPD and their candidate, Olaf Scholz, secured a narrow win in the German election which saw Angela Merkel’s centre-right CDU party and their candidate, Armin Laschet, plunge to a historic low. Parties will embark on “exploratory talks” to form a government, with a three-way coalition considered the most likely.
Stagflation Clouds British Economy Wracked by Lockdowns and Supply Constraints
The latest Flash PMI data for September from IHS Markit shows the fourth successive monthly slowing of business activity. At the same time goods and services inflation is rising at the fastest rate in at least 22 years. The Bank of England is rightly concerned on scaling back its pandemic stimulus. Stagflation from growth trending sharply lower while prices continue to surge higher is here, will it last? Supply constraints limit business activity the damage is clear from virus related … Continue reading “Stagflation Clouds British Economy Wracked by Lockdowns and Supply Constraints”
Australia’s Manufacturing PMI Rose To 57.3 in September as Output and New Orders Returned to Growth
Australia’s Markit preliminary PMIs for September saw Manufacturing at 57.3 (prior 52.0) and Services off a 14-month low to 44.9 (prior 42.9) as continued lockdowns aimed to bring the COVID-19 situation under control dampened business conditions.
Australia’s Consumer Prices Rise Sharply as Fuel Prices Jump 6.5% in The Quarter
Inflation continues to bubble along in Australia to the highest since Q3 2008. Australian consumer prices rose 0.8% in the second quarter. Automotive fuel prices climbed 6.5% and Electricity prices jumped 3.3%. The ABS expects the sharp jump in annual inflation to be temporary
Australia’s Consumer Confidence Dropped With Sydney, Victoria and South Australia Lockdowns
Australia’s consumer confidence dropped 3.5% last week, as Sydney, Victoria and South Australia remained under a lockdown says ANZ Roy Morgan. Sentiment around current economic conditions dropped 6%.
Australia’s Manufacturing and Services PMI Highlight Renewed Lockdowns Hit To Growth in July
Australia’s Markit preliminary PMIs for July saw Manufacturing at 56.8 (prior 58.6) and Services crash to a 14-month low 44.2 (prior 56.8) as renewed lockdowns aimed to bring the COVID-19 situation under control disrupt the economy.
Federal Reserve Financial Stability Report Warns on Worsening Liquidity Risks
The Federal Reserve released it’s twice–yearly report on financial hazards in it’s 2020 financial stability report warning that the coronavirus (COVID-19) pandemic has caused tremendous human and economic hard-ship across the United States and around the world. They warned on assets if the pandemic worsens. Federal Reserve 2020 financial stability report Highlights Warns financial sector vulnerabilities likely to be significant in near-term Pandemic strains on household and business balance sheets likely created fragility’s that last for some time Warns banking … Continue reading “Federal Reserve Financial Stability Report Warns on Worsening Liquidity Risks”
Chip Shortage and COVID Slams Taiwan Stock Index in Biggest 2 Day Collapse in Thirty Years
Taiwan’s stock index (TAIEX) has been one of the success stories of 2021, led by Taiwan Semi Conductor $TSM. However the chip shortage is taking it’s toll and new outbreaks of the coronavirus has shocked the island nation. The TAIEX is down 8.6% in the largest 2 day drop since 1990 and down more than 13% from its April high