Friday’s session brought back nervousness and volatility. It seems that last week, when the most important central banks on the planet confessed, the main conclusion is that they are scared with inflation. Something that was seen coming, but that some investors needed to be corroborated by Jerome Powell and ignored the obvious signs. In any case, “it does not appear that the background trend will change overnight or will succumb to Omicron.” point from Divacons Alphavalue.
Precisely the new variant of Covid is one of the factors that weigh today in the fall of American futures. Specifically, and after the closing of Wall Street friday in red (Dow Jones: -1,48%; S&P 500: -1,03%; Nasdaq: -0,07%) and an accumulated of the last five sessions in which the Dow Jones has dropped almost 1.7%, while the losses in the S&P 500 have been 1.9%, this Monday, American futures are trading down 1.11% for the Dow Jones, 1.25% for the S & P500 and 1.42% for the Nasdaq.
How fast it is spreading Omicron It has caused the confinement of several European countries, such as Austria and the Netherlands, and strong falls in the European stock markets.
The second negative factor that is affecting Wall Street this Monday is the blockade of the social spending plan promoted by the Biden Administration, and that is valued at $ 1.75 trillion. Specifically, the Democratic US Senator Joe Manchin said this Sunday that he will vote against the 1.75 trillion social spending package that the president, Joe Biden defends, which makes its approval enormously difficult and sinks the options. that it succeeds, at least in its current form. Manchin, the most conservative politician within the Democratic wing in the Senate, said in an intervention on Fox News channel that he cannot “vote for this legislation to continue,” although he claimed to have “tried everything humanly possible” to make it go ahead.
Meanwhile, at the moment, in Europe all the indices are still negative. The DAX yields 1.79%, to 15,255 points, the FTSE -100 falls by 1.10%, to 7,192 points, the CAC-40 It falls by 1.13%, to 6,848 integers, the IBEX 35 trades with falls of 1.39% at 8,196.30. Meanwhile, the Euro Stoxx 50 1.31% is left in the 4,106.
The asian bags They fell after the tightening of restrictions in Europe in the face of the increase in cases of the omicron variant of COVID-19, which threatens to depress the world economy in the new year.
The prices of the Petroleum They fell, with the increase in cases of the omicron variant of the coronavirus in Europe and the US fueling fears that new restrictions on companies could affect fuel demand. Brent futures are down 2.72% at $ 71.51, while West Texas is down 3.44% at $ 68.42.
Economy and politics
The US Department of Energy announced on Friday that it will place 18 million barrels on the market between February 1 and March 31.
US Senator Joe Manchin, a moderate Democrat key to the US president’s hopes of passing a $ 1.75 trillion national investment bill, said Sunday that he will not support the package, prompting disapproval from the White House. .
Fed Governor Chris Waller, a notorious “hawk,” says he believes a rate hike in March is “very likely” and that the central bank could start cutting its balance sheet in mid-2022. of the San Francisco Fed, Mary Daly, refused to rule out a hike in March and was in favor of making up to three hikes next year.
China cut its benchmark lending rate for the first time in 20 months in an attempt to prop up growth in its slowing economy, though it remains cautious about easing conditions in the country’s highly leveraged housing market.
China will tighten enforcement of antitrust laws.