Stocks are all trading in the green zone.
The latest updates from the Omicron variant are mostly positive. Anthony Stephen Fauci, the director of the National Institute of Allergy and Infectious Diseases and the Chief Medical Advisor to the President, said last night that the Omicron variant of coronavirus is not as dangerous as the Delta variant, and most confirmed patients only show up The milder symptoms are consistent with the previous statements of South African medical experts. However, Mr. Fauci also emphasized that the current data are still not enough to have a conclusion on the toxicity of Omicron.
These comments lowered the market risk and helped the stock markets to increase, since already we know that the Omicron variant of Covid-19 will not set the world economy back, even can accelerate the end of the pandemic. Therefore, the Asian season ended with a 1.9% gain in Japanese 225, a 2.7% increase in Hang Seng price, and 0.2% in Shanghai. This positive sentiment continued in Europe as well, especially with better than expected German ZEW Economic Sentiment (Dec) and Eurozone GDP data. So far, at the time of writing, GErman DAX is up by more than 2.2% and UK100 is gaining 1.2%. However, we have to be a bit more cautious still, as it is still early days.
USD index in reaction moves in a clear uptrend and continued to gain more, as these comments will increase the Dollar demand. Positive news from the virus with great economic data from the United States, while we have increasing inflation, will lift the expectations from Federal Reserve to increase the level of its Hawkish policies and rate hikes. From the technical point of view also, it is moving clearly above its trend line and main MA`s in all timeframes, with RSI above 60.
