Market Commentary – December 7, 2021

Kevin Jock

7th December 2021

U.S. equities rose on Monday, led by travel stocks, as fears of the Omicron variant have eased. The S&P 500 index ascended 1.17% on Monday, while the Dow increased by 1.87%. Travel-related stocks rallied strongly, with shares in Norwegian Cruise Line, United Airlines, Royal Caribbean Cruises and Carnival all rising by more than 8%.

European equities boosted by travel stocks as well, with the hope that the virus variant would be mild. After marking its third straight week in the red, EURO STOXX 50 closed up 1.4%, while FTSE 100, CAC 40 and DAX were all up by nearly 1.4% as of Monday’s close. Travel and leisure stocks rejoice, with the index surging 3.9% and posting its best session since May.

In Asia, Japanese shares jumped on Tuesday, led by SoftBank and travel related stocks, with the Nikkei 225 index ascended 1.27% to 28,282.01 by the mid-day close. Meanwhile, China stocks rose on Tuesday morning as well, after the central bank cut the amount of cash banks must hold in reserve. The CSI 300 index rose 0.5% at the end of the morning session.

Oil prices rose on Tuesday after a near 5% rebound the day before as concerns about the impact of the virus variant on global fuel demand eased. Bitcoin is back over $50K in early Asia on Tuesday, after firming overnight in line with equity markets and other risk assets, but many crypto traders remained on edge after Saturday’s sharp and sudden plunge.


Figure 1 (Source: IS Prime) AUDUSD Daily : Aussie dollar briefly breaches 0.70 handle, a level unseen since November 2020 when dovish policies prevailed and inflation uncertain.

Headliner to Review

  • German factory orders decreased by 6.9% in October 2021 compared with September 2021, which is an increase of 1.8%.

Headliner to Watch

  • The Japanese final quarterly GDP figure is due to release on Wednesday, forecasted to contract by 0.8%.
  • Bank of Canada (BOC) will announce its rate decision in tomorrow. It is not expected to do anything, but officials will likely be more confident in the economic recovery, especially after the very strong jobs report before the weekend.

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Antony Tan
Kerry Man