Stock Exchange Uncertainty freezes shares even in the week ahead: “There has been no information over the weekend that could calm the market”

On Friday, stocks fell sharply around the world as the market feared information about a new virus variant.

Coronavirus new omicron transformation has caused considerable uncertainty in the securities markets.

Over the weekend, infections have been detected around the world, but the three ultimate questions remain open: how easily a new variant is transmitted, how dangerous it is, and when a vaccine can be developed against it if necessary.

“I believe the uncertainty is going to be high this week as the micron transformation has spread alarmingly fast and it is still unclear how well the current vaccines will work against it. There has been no new information over the weekend that could calm the market, ”says Evli Bank’s chief strategist. Valtteri Ahti.

Information about a new virus variant shook on Friday securities markets around the world. Shares fell more than two percent in the United States and nearly 4 percent in Europe.

The stock market fear coefficient, the Vix index, rose 54 percent on Friday as investors hedged against the expected continued decline in stocks with derivatives.

Read more: The stock market turned red and the Vix fear coefficient rose vertically: What does it say?

On Friday trading in the United States was limited: it ended three hours earlier than usual. The reason was Thanksgiving in the United States on Thursday, when there was no trading on the stock exchange at all.

“Trading volume was moderately low on Friday. Large investors will form their views on the economic impact of the virus variant on Monday, so an exciting day is known. ”

Finance company Nordea’s main strategy Jan von Gerich also emphasizes that data on coronavirus omicron transformation are still incomplete.

“It is certain that the uncertainty will continue in the coming week, but the difference is how great. I don’t think there’s a panic in the market on Monday morning. “

He also points out that on the Friday after Thanksgiving, trading was low and then perhaps even worse was being prepared.

“The data that came over the weekend speaks little to the fact that the virus variant may not cause a serious form of the disease and will not infect as easily as initially thought. With a view to next week, the key question is what new and reliable information will be available about the transformation. The new information will largely determine what happens in the market. ”

The new virus variant also had a strong impact on crude oil prices on Friday, falling more than 10 percent in both Europe and the United States.

.
#Stock #Exchange #Uncertainty #freezes #shares #week #ahead #information #weekend #calm #market

Related Posts

Next Post

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended