COVID and its variants are back in the news and having had a significant effect on markets but there may have been a larger reaction because of holiday thinned markets. Last week we mentioned growth stocks being hit if COVID came back and that is what happened again on Friday.
It also took oil and metals down into double figure drops although there has been a recovery of sorts first thing on Monday.
Its likely that longer term investors are pulling back on risk for year end and that’s going to cause more volatility as less and less participation occurs.
The twin market drivers: inflation and COVID are likely to cause continual “see-sawing” of markets and with increasingly large swings.
This week has USA unemployment on the data front foot and its important because the return to work has been poor and is contributing to wage inflation so the market will look for good numbers to assuage inflation fears.
Date | Country | Figures | Expected | Previous |
Nov 29 | USA | Powell speaks |
|
|
Nov 30 | EUR | CPI | 3.7% | 4.1% |
Dec 01 | EUR | Retail Sales | -2% | -0.9% |
| GBP | Bailey speech |
|
|
| USA | ADP employment change | 525K | 571K |
| USA | ISM | 61 | 60.8 |
Dec 02 | USA | Initial Jobless Claims | 250K | 199K |
Dec 03 | USA | Non Farm Payrolls | 550K | 531K |
|
| ISM | 65.5 | 66.7 |
The content of this Market Commentary is provided for general information only. It is not intended to amount to advice on which you should rely. In particular, neither this Market Commentary nor any other content of our website should be construed as investment advice. The information contained in this Market Commentary is not, and should not be read as, an offer, recommendation or inducement to engage in investment activity. In no event shall we be liable for any damages resulting from reliance on or use of any information contained in this Market Commentary. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content of this Market Commentary.
Although we make reasonable efforts to ensure that that the information in this Market Commentary is accurate as at the date on which it is published, we make no representations, warranties or guarantees, whether express or implied, that it is accurate, complete or up to date.