Omicron to boost markets amid heavy week of economic data



Sunday 12 December 2021 5:12 pm

Sentiment is more confused due to uncertainty as to the extent to which the reintroduction of stricter Covid-19 prevention measures in the UK could hurt economic growth in the coming months

Once again, the Omicron news is expected to spark sudden reactions from investors amid a busy week of closely watched economic data.

Sentiment is more confused due to uncertainty as to the extent to which the reintroduction of stricter Covid-19 prevention measures in the UK could cloud economic growth in the coming months.

Despite further confusion over the trajectory of the UK economy, the FTSE 100 posted a strong performance last week, gaining more than 2%.

Experts stressed that investors will remain eager for stocks if the outlook for global growth remains strong.

Goldman Sachs analysts said: “More negative macroeconomic surprises from the impact of the winter waves of Covid-19 could weigh on risk appetite in the short term, but we believe investors will likely end up looking at them. as long as expectations of healthy growth for the whole of next year remain anchored.

A busy week of leading economic data will also lead to big swings in the markets.

Tuesday’s jobs post will be the first to take into account the impact of the end of the holiday scheme, but analysts are forecasting a drop in the unemployment rate.

The latest inflation data (for November) should arrive hot, hovering around five percent. Such a high reading will shake supporters of the Bank of England, which will make its latest interest rate decision on Thursday.

City pundits have limited bets on the Bank’s rate hike for the first time in three years and now believe Threadneedle Street will leave them unchanged at an all-time high of 0.1%.

Retail sales data from the Office for National Statistics is released on Friday and the latest UK composite PMI is released on Thursday.


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