Omicron scare threatens to derail recovery

- Reading The Australian Financial Review

Maggie Liu
1 min readNov 29, 2021

On November 29, the concerns about the new omicron COVID-19 variant were increasing. The market expected a projected drop in Australian Shares after a 1.4% decline in the S&P/ASX200 last Friday.

In the global equity markets, the MSCI All Country World Index benchmark dropped 2.2%. The S&P 500 index of US equities declined 2.3%. The Euro Stoxx 600 plunged 3.7%.

The oil price dropped after ascent over the past few months, thanks to the US's release of 50 million barrels, though the surging demand and weak supply across Europe and China.

The price for iron ore also fell 2.4%, while Copper fell 2.5%, nickel dropped 3.2 per cent, and aluminium shed 3.3 per cent.

In currency, the Australian dollar fell 1% as the lowest level in a year. Both the yield on the US & AU 10-year government bonds fell.

Investors were likely selling first before clarifying questions, even though the robust growth in the December quarter after the restrictions eased and lit known about the transmission of the omicron variant.