US inflation is rising at the highest pace in decades and omicron is widely spreading in the United States

2021-12-27T11:56:09
Brent crude Covid-19 markets US inflation
...

US inflation is rising at the highest pace in decades and omicron is widely spreading in the United States

US inflation is rising at the highest pace in decades and omicron is widely spreading in the United States: Markets are concerned about Omicron, at a time of calm over the Christmas holidays,
making trading volumes simple and calm.

Evest follows market developments in the following report.

Topics:

Cancellations of more than 1000 flights in the United States in one day due to Omicron

73.2% of Covid-19 infections in the United States of America are of Omicron strain

Inflation in the United States has accelerated to its highest level in decades

Markets are waiting for US-Russia talks

Brent crude is declining and West Texas crude is rising

Natural gas prices are declining in Europe

US stock indices are rising 

Mixed dynamics in Asia

Cancellations of more than 1000 flights in the United States in one day due to Omicron

The Associated Press (AP), citing data from FlightAware, which tracks aircraft flights,
reported that several major US airlines canceled nearly 10000 flights last Saturday,
indicating recruitment problems related to the spread of Covid-19.

“The shortage of staff due to the spread of the Omicron coronavirus continues to result in the cancellation of flights and it is not yet clear when the airline will be able to resume normal operations,”
said Maddie King, United Airlines spokeswoman.

On Friday – Catholic Christmas Eve – 690 flights were canceled. Airlines had already announced the cancellation of more than 250 flights on Sunday.

Flights were canceled during peak holiday traffic.

As a result, chaos has arisen at a number of airports because of long queues at check-in counters and ticket offices of airlines that have continued to operate flights,
according to the Associated Press.

73.2% of Covid-19 infections in the United States of America are of Omicron strain

The number of infections of the Omicron coronavirus has increased in the United States in recent days. US President Joe Biden described this strain as prevalent in the country.

“Omicron is now dominating the country. It happened very quickly,” the US leader said in his address to the nation on Tuesday.

On Monday, the American Centers for Disease Control and Prevention (CDC) reported that as of the beginning of this week,
the cases of omicron represented 73.2% of all cases of Covid-19.

This figure had reached 90% in some areas of the country’s east coast. A week ago, it was 12.6% in the United States as a whole.

According to Johns Hopkins University of America, as of Sunday morning in the United States since the beginning of the pandemic,
the number of Covid-19 infections has been estimated at over 52 million,
and the number of deaths related to diseases related to the virus has exceeded 816 thousand.

 

Inflation in the United States has accelerated to its highest level in decades

Statistics released yesterday showed that inflation in the United States has accelerated to its highest level in several decades.

The core inflation index – which is tracked by the Fed’s core PCE (excluding food and energy prices) – jumped 4.7% in November from the same month last year.

Inflation accelerated sharply by 4.2% compared to October, the highest in more than 30 years.

Income growth for the US population slowed in November to 0.4% from 0.5% in the previous month and expenditures – to 0.6% from 1.4%.

Markets are waiting for US-Russia talks

Market players continue to monitor US – Russian relations.

In the meantime, US Ambassador in Moscow, John Sullivan,
said in an interview with Kommersant newspaper that the US and NATO are willing to cooperate with Russia on security assurances.

According to him, this willingness to interact is in line with the June meeting of the leaders of the United States and the Russian Federation and,
“is consistent with President Biden’s philosophy, which is that he wants to be direct and transparent with President Putin.”

The American ambassador said that the United States expected to start negotiations with Russia on security assurances in January,
but was not yet ready to set a precise date.

Brent crude is declining and West Texas crude is rising

The price of Brent crude falls on Friday, and trading in West Texas Intermediate crude has been suspended, as U.S. markets closed on Christmas Eve.

February Brent crude futures prices on the London Stock Exchange ICE Futures fall by $1.29to $75.86 per barrel on Friday.

While, West Texas Intermediate crude futures rose by 1.4% at 54 cents, to $72.66 a barrel. Yesterday,
West Texas Intermediate crude futures’ prices rose by 1.4% – to $73.79 per barrel.

The oil market was supported by indications that the new strain of Covid-19, Omicron, is less dangerous than previous variants of the Coronavirus.

A number of recently published studies have shown that the risk of hospitalization of omicron patients is much lower than in previous strains.

n addition, the Food and Drug Administration (FDA) has approved the use of coronavirus drugs from Pfizer and Merck.

World markets are optimistic amid expectations that vaccines will help contain the outbreak of the Omicron strain of Covid- 19,
as well as reports of a smaller proportion of hospitalizations of patients infected with the new strain. 

 

Natural gas prices are declining in Europe

Natural gas prices in Europe declined for the third consecutive day as more tankers crossed the Atlantic Ocean with U.S. fuel in an energy-scarce region. 

The Dutch spot market, in terms of US dollars per thousand cubic meters, fell by more than $1000 from its highest level.

Consequently, they raised corrective movement in Gazprom and Novatek stock prices.

Lower natural gas prices could bring a number of buyers’ inquiries back to the early December level ,
and restart the Yamal-Europe gas pipeline in a forward direction rather than the opposite direction.

and the next polar cyclone may once again draw attention to the disastrous and ever-decreasing decline of natural gas supplies in European storage facilities,
which are less than 58% full.

US stock indices are rising 

US stock indices rose by 0.6-0.9% on Friday, while Standard & Poor’s hit 0.6% for the 68th time this year.

The last auction this week regarding the approach of Catholic Christmas will resume stock trading next week,
but the trading value is likely to remain low before New Year’s Eve.

Although US exchanges will open on December 31 and January 3, trading in many other world markets will not take place these days.

Mixed dynamics in Asia

In Asia, index dynamics were mixed on Friday.

Japan’s Nikkei lost less than 0.1%, China’s Shanghai Composite index fell by 0.7%,
Hong Kong’s Hang Seng added 0.1%), and Europe has a severe loss (British FTSE lost 0.02%, French KAC 40 fell by 0.3%).

 

brandfooter