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Wall Street stumbles on variable omicron and closes November with losses

This content was published on November 30, 2021 – 21:55

New York, November 30 (EFE). – Wall Street says goodbye to November with accumulated losses in its three major indices after recent panic sales linked to the omicron variant of the coronavirus, which turned into a normally quiet month in the stock market.

The Dow Jones Industrial Average cut 3.98%, the S&P 500 selectively reduced 1.01% and the Nasdaq Composite Index 0.37%, bad data that, after all, is no worse than the one released in September, the worst month of the year.

European squares haven’t raised their heads either, with an 8.3% drop in Madrid; 5.12% in Milan and about 3% in London and Paris among other countries.

November started with an all-time high, but investors were losing optimism when they watched the COVID-19 rallies in Europe, as some countries imposed restrictions, and eventually panicked after setting the Omicron variable.

After the Thanksgiving holiday in the US, Wall Street faced a “Black Friday” that leaves the worst trading day of the year, with more than 900 points cut in the Dow and a more than $10 drop in the price of oil.

The massive sales continued on Tuesday due to doubts about the efficacy of antiviral vaccines against omicron and comments by Federal Reserve Chairman Jerome Powell about a possible acceleration of the withdrawal of stimulus in light of rising inflation.

Inflation was another bearish factor this month that is usually mild for the market, as October’s reading showed an increase of 6.2% in the annual rate, the highest level in consumer prices since 1990, reinforcing doubts about its passage.

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“In the face of the holidays, prices have been the priority, as from gasoline to Turkey on the table, everything is costing more this year,” Wells Fargo analysts said in a note that also highlighted waning consumer confidence.

Despite the good results presented by major retailers in the last quarter and their positive sales forecast for the Christmas season, lower sales were seen in the US for the first time on Cyber ​​Monday (-1.4%), up to $10.7 billion.

The 10-year Treasury yield started the month at 1.55% and was below 1.45% today due to betting on safer securities after touching 1.67% before fear spreads to the new alternative.

Experts at Jefferies point out that there is an “ominous” flattening of the public debt yield curve — both short and long-term bond rates approaching — reminiscent of levels seen in March 2020.

As for the oil market, futures contracts for Texas barrels suffered a monthly decline of 20% amid concerns about how the demand for fuel will develop in the face of a new wave of the Corona virus, and after the United States decided to free crude oil from its strategic reserves to curb prices. .

Cryptocurrencies were not isolated from the earthquake: Bitcoin fell to $53,700 on “Black Friday” and rose slightly, but it is far from its peak of $67,000 at the beginning of the month. EFE

nqs / fjo / rrt

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