|

Omicron appears to be milder, risk-on

The Santa Claus may be upon us after all. Markets thrive on the optimism that the wave of Omicron appears to be milder. The reports came out over a series of days and the upbeat sentiment was rehashed on Wednesday of news of preliminary studies published in the UK and South Africa.

Early evidence suggests fewer people are needing hospital treatment than with other variants - with estimates ranging from a 30% to a 70% reduction, the BBC reported. 

However, the spread of the disease could overwhelm hospitals, the article warns as it notes that more than 100,000 cases have been reported in the UK in a single day for the first time.

Also, cases of omicron are doubling about every two days. In the past week, the percentage of omicron cases in the United States rose from 13 percent to 73 percent.

"The major question for everyone right now isn't whether omicron is going to hit their area. It will," said Dr. Michael Saag, an infectious disease expert and associate dean for global health at the University of Alabama at Birmingham.

"The question," he said, "is how much disease will it cause?"

The BBC wrote, ''a deeper understanding of the severity of Omicron will help countries decide how to respond to the virus.''

''The study in Scotland has been tracking coronavirus and the number of people ending up in hospital.

It said that if Omicron behaved the same as Delta, they would expect about 47 people to have been admitted to hospital already. At the moment there are only 15.

The researchers said they were seeing a roughly two-thirds reduction in the number needing hospital care, but there were very few cases and few at-risk elderly people in the study.''

Meanwhile, though much remains unknown about omicron, experts say the variant could lead to long Covid, even with a mild case. This means that patients with long-term symptoms can experience crushing fatigue, irregular heart rhythms and other issues months after their initial Covid infection. 

Nonetheless, experts continue to urge people to get vaccinated and get a booster shot to reduce the risk for severe illness. Markets are of the opinion that vaccinations will contain the spread and US stocks closed near session highs. 

The S&P 500 gained 1% to 4,696.56, the Nasdaq Composite rallied 1.2% to 15,521.89 and the Dow Jones Industrial Average gained 0.7% to 35,753.89. Pfizer rose after the FDA approved the covid-19 tablet for emergency use in the US.

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

More from Ross J Burland
Share:

Editor's Picks

AUD/USD bulls seem hesitant below 0.7050 ahead of RBA on Tuesday

AUD/USD reverses an Asian session dip on Monday as renewed optimism over Iran diplomacy boosts investor confidence, keeping a lid on the safe-haven US Dollar and supporting the risk-sensitive Aussie. Spot prices, however, remain below the one-month high, touched last Thursday, as bulls wait for the crucial RBA decision before taking fresh positions.



USD/JPY climbs to 158.00 neighborhood as BoJ uncertainty weighs on the JPY

The USD/JPY pair gains some positive traction at the start of a new week, recovering further from Friday's post-Bank of Japan (BoJ) swing low to sub-157.00 levels. The momentum lifts spot prices to the 158.00 neighborhood during the Asian session and seems unaffected by fresh intervention warning from Japan's Finance Minister Satsuki Katayama.

Gold rebounds to near $3,900 as Fed hike bets cap upside

Gold price edges at the start of a new week, reclaiming $3,900 during the Asian session and reversing a part of Friday's heavy losses to its lowest level since October 2025. The upside potential, however, seems limited as elevated oil prices and inflation concerns keep Fed rate hike bets firmly on the table.

Zcash rebounds as ZODL founder now supports ending community grants
Zcash (ZEC) shows signs of recovery on Monday, extending gains above $1,250 as the Zcash Open Development Lab (ZODL) founder, Josh Swihart, now supports the compromise proposal to end the 8% block reward share directed to Zcash Community Grants (ZCG).
Middle East War updates: Iran warns of expanded strikes against US despite progress in talks

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.

The 2% inflation target came from a throwaway remark. It now moves trillions
The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.