Stock and Oil prices Jolts over the spectra of tighter pandemic curbs

Last week, the S&P 500 fell about 1.1 percent, recovering some of its earlier losses and the index fell nearly 2 percent.

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Stock and Oil prices Jolts over the spectra of tighter pandemic curbs

Prices of crude oil and stock prices have pummeled as a result of the spread of the Omicron variant and the Biden Administration’s failed efforts to pass a comprehensive domestic policy bill.

Last week, the S&P 500 fell about 1.1 percent, recovering some of its earlier losses and the index fell nearly 2 percent.

Also Read: Saudi Arabia boosts oil prices for Asian and American buyers

“For the first time since Omicron appeared we have reason to be nervous about the variant having an impact on the growth trajectory of the economy,” said Lindsey Bell, the chief money and markets strategist at Ally Invest, a foreign exchange company. “A slowdown could mean inflation sticks around a bit longer given supply chain constraints.”

Investors are having a downbeat prediction on the global economy as governments of various countries race to curb the spread of the new variant. The spread of Omicron saw the Netherlands go into lockdown on Sunday and put pressure on others to follow, though the United States seemed set to remain open.

Coronavirus restrictions have also clouded the Asian market as Chinese blue chips dipped 0.4%, while MSCI’s index of Asia-Pacific shares outside Japan fell 0.8%. Japan’s Nikkei dropped 1.7% and South Korean stocks 1.2%.

In the White House, the future of Mr. Biden’s $2.2 trillion domestic policy bill was put in doubt after Senator Joe Manchin III, Democrat of West Virginia, said he would vote against it because he feared it would inflame inflation.

Disagreement over the bill also pushed shares of major engineering and construction materials companies lower. SolarEdge Technologies, which provides solar-powered systems, fell 10.6 percent, while the asphalt maker Vulcan Materials fell 2.9 percent.

“Omicron … remains one of the biggest issues for markets right now and has significantly clouded the outlook moving into year-end,” Deutsche Bank analysts said in a note, adding that Manchin’s stance “marks a significant blow for President Biden’s economic agenda”.

European and UK stocks hit two-week lows, dropping 1.9% and 1.8% respectively. Emerging market stocks also hit their lowest in a year. Stocks and oil prices in emerging markets also sank Monday on fears about a fresh global surge in coronavirus infections.

Crypto bulls, too, were hardly cushioned from the volatility. The end-of-year slump in everything from Bitcoin to Ether to Dogecoin continued on Monday. Bitcoin was off nearly 3% at 4 a.m. ET, well below its 200-day moving average. Ethereum’s Ether was down nearly 5%.

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Stock and Oil prices Jolts over the spectra of tighter pandemic curbs
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Last week, the S&P 500 fell about 1.1 percent, recovering some of its earlier losses and the index fell nearly 2 percent.
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THE POLICY TIMES
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