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All Eyes on Omicron and Inflation Data for the Markets Next Big Move – What’s Next?

By:
Phil Carr
Published: Dec 6, 2021, 12:05 UTC

Developments around the new Omicron variant will continue to drive the markets again this week as traders await more news on the heavily mutated coronavirus strain, which The World Health Organisation has labelled as a variant of concern.

All Eyes on Omicron and Inflation Data for the Markets Next Big Move – What’s Next?

The coronavirus variant has now been reported in over 45 countries worldwide, since it was first discovered in South Africa late last month and is continuing to spread like wildfire.

Last week, Federal Reserve Chair Jerome Powell signalled that the Omicron variant could slow down the global economic recovery and prolong supply chain disruptions that are fuelling unstoppable inflation.

Powell’s comments were also echoed by some of the world’s top economists warning that the new Omicron variant could shake up the markets, exacerbate supply chain woes, amplify record-high inflation pressures – and possibly result in 1970s-style “stagflation.”

Elsewhere on the radar this week will be the closely watched U.S Consumer Price Inflation data. The reading is expected to show the largest year-over-year jump in consumer inflation since the early 1990s.

Currently, the price action across a number of commodity markets from the metals and energies is beginning to resemble the identical trend seen during the first wave of the pandemic in April 2020.

Where prices go next will be dictated by what scientists discover about the new COVID-19 variant, including how resistant it is to vaccines and how more transmissible it is than the delta variant.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Phil Carrcontributor

Phil Carr is co-founder and the Head of Trading at The Gold & Silver Club, an international Commodities Trading, Research and Data-Intelligence firm.

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