Market Commentary – December 9, 2021

Kevin Jock

9th December 2021

Global stocks held on to their recent gains on Wednesday with the S&P 500 index rose 0.31%, while the tech-heavy Nasdaq climbed 0.64%. Pfizer announced that early studies showed a third shot of the BioTech/Pfizer vaccine offered protection against Omicron, but two doses show significantly reduced effectiveness.

European stocks ended the session lower on Wednesday with tech and luxury stocks reversing strong gains as investors worried whether the current vaccine is effective against the new virus variant, as well as the possibilities of tougher restrictions this week in Britain weighed on sentiment. The FTSE 100, CAC 40 and DAX all fell marginally by 0.03%, 0.72% and 0.8% respectively.

Elsewhere in Asia, Japan’s Nikkei fell on Thursday as investors became risk averse ahead of key central bank meetings next week, with the Nikkei 225 index dropped slightly by 0.26% before the mid-day close. Meanwhile, China shares rose on Thursday, taking gains into a third straight session with its blue-chip CSI300 index up 1.76% at the morning market closure.

Brent crude has been rallying for the past 4 days, currently settled at around $77 per barrel. Whereas gold price has been remained pretty much flat in these days, still trading at $1,785 per ounce. Sterling traded 0.5% lower to $1.317 against the dollar, after Boris Johnson is set to implement the Plan B of further restrictions, including requiring vaccine passports for large venues and an order to work from home in a bid to curb the spread of the virus variant.


Figure 1 (Source: IS Prime) GBPUSD Daily : Cable touches lowest level in more than a year as fresh restriction prospects cloud UK’s economic outlook.

Headliner to Review

  • The Bank of Canada (BOC) left monetary policy unchanged by keeping the overnight rate at 0.25%. However, the accompanying statement indicates the central bank thinks interest rate hikes won’t be far away.
  • U.S. commercial crude oil inventories decreased by 0.2 million barrels from the previous week, a much smaller decrease compared to the forecasted figure of a decrease of 1.5 million barrels.

Headliner to Watch

  • The US CPI reading is expected to rise even further on Friday, by 0.7% m/m, as their economy continues to struggle with ongoing supply chain shortages and rising labor costs.

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Antony Tan
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