Omicron wreaked havoc in the markets on Friday, sending European indices near 5% lower into Friday’s close. The selloff in the US was a bit less severe, but this is obviously not the performance we were expecting on Black Friday.

And weekend news was mixed.

Of course, the governments are quite experienced by now, so none was keen to wait and see we what would happen next. The reaction came fast, and included the well-known travel restriction measures, halting flights, restoring the entry measures, the tests, the isolation and so. The latter is bad news for the economic activity.

But the good news is, the WHO said that the symptoms of the new omicron were rather ‘mild’ so far. Therefore, the financial implications could be less bad than what everyone first thought.

Market action on Monday is not as bad as Friday. European stocks and US equity futures are up, but the risk appetite is vulnerable to news.

This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

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