Equities and oil prices gave up further ground after the rapid spread of the Omicron coronavirus variant prompted governments across the developed world to reimpose lockdowns, spooking investors who fear the pandemic may again choke off the global economic recovery.
The FTSE All-World Index fell 1.3 per cent, marking its worst one-day slide since shortly after the discovery of the new variant last month. Wall Street’s S&P 500 also dropped 1.1 per cent after a 1 per cent fall on Friday, led lower by stocks in economically sensitive sectors such as financials, raw materials and consumer goods.
The tech-heavy Nasdaq Composite fell 1.2 per cent. Oil prices were also under significant selling pressure. Brent, the international benchmark, fell 2.7 per cent to $71.52 a barrel, while US benchmark West Texas Intermediate declined 3.7 per cent to $68.23.
Omicron is “one of the biggest issues for markets right now” because it has “clouded the outlook moving into year-end”, said Jim Reid, strategist at Deutsche Bank.
In Asia, Hong Kong’s Hang Seng traded 1.9 per cent lower and Tokyo’s Nikkei 225 shed 2.1 per cent yesterday.
Thanks for reading FirstFT Asia Here’s the rest of today’s news — Emily
Five more stories in the news
1. Turkish lira gyrates as Erdogan vows ‘no going back’ on rate cuts The currency whipsawed after President Recep Tayyip Erdogan rejected warnings from business about the dangers of recent interest rate cuts. The lira fell to a new record low of TL18.36 against the dollar yesterday before rallying to TL14.8 in chaotic trading late in the Turkish day.
2. Federal prosecutor says Maxwell worked ‘hand-in-hand’ with Epstein Prosecutor Alison Moe called Ghislaine Maxwell a “sophisticated predator who knew exactly what she was doing”, as she urged jurors to convict the British socialite of sex trafficking. “She manipulated her victims and she groomed them for sexual abuse,” Moe said in her closing argument.
3. China’s top online shopping celebrity suspended after tax fine Huang Wei, known online as “Viya”, has vanished from Alibaba’s ecommerce platform Taobao after authorities fined her for tax evasion, in a big blow to the ecommerce giant’s fight to dominate the growing market of livestream shopping.
4. Peng Shuai denies she was sexually assaulted by Chinese official The tennis star at the centre of China’s biggest ever #MeToo scandal has denied claims she had been sexually assaulted by a senior Communist party official that were posted last month on her official Weibo account.
5. Chile’s stock market and currency fall after election result Chile’s currency and its local stock market fell sharply yesterday after Gabriel Boric, the leader of a leftwing coalition that includes the Chilean Communist party, won the country’s presidency by more than 11 percentage points.
Coronavirus digest
The People’s Bank of China has cut one of the country’s most important lending rates in a sign that the government is pushing ahead with policy easing measures to counter a loss of economic momentum.
Moderna’s said its Covid-19 booster shot increases antibody levels 37-fold, compared with people who received just two doses.
The World Economic Forum has scrapped its plans to hold an in-person annual meeting in Davos next month amid continued uncertainty over the Omicron variant.
The Novavax coronavirus vaccine has been recommended for use in the EU by a European Medicines Agency panel.
The divide over worker autonomy will widen in 2022 as the trend for more flexible working gathers pace, writes Pilita Clark.
The day ahead
Reserve Bank of Australia December minutes released The minutes from the board’s monetary policy meeting this month could shed light on the central bank’s bond buying and its timeline for rate hikes. (Reuters)
Bank of Korea PPI data South Korea will release its producer price index figures for November. Meanwhile, the government expects inflation to keep heating up and outpace the Bank of Korea’s current forecasts. (FT, Bloomberg)
Winter solstice in northern hemisphere Those marking the occasion include, in the UK, druids at Stonehenge and The Burning the Clocks parade in Brighton.
What else we’re reading and watching
A tale of two elites in Washington and Beijing One of the few things that Republicans and Democrats agree on is that America should treat China as a serious and dangerous global rival, writes Gideon Rachman. Until recently, most Americans assumed that the US would retain a technological edge over China. That can longer be taken for granted.
‘Just in time’ to ‘just in case’ Companies have encountered snags in their supply chains during the pandemic as well as shipping bottlenecks, forcing a rethink of corporate strategy that includes increasing the inventory they keep on hand to entering into longer term contracts with suppliers.
It’s not only working mothers who benefit from flexible jobs Onerous working hours which allow no space for family life underlie some of the starkest blue-collar labour shortages in 2021. Working mothers have been trying to balance work and family pressures for more than a century. It should no longer just be their battle to fight, writes Sarah O’Connor.
The biggest market moments of 2021 From the GameStop saga to the Archegos debacle it has felt like a long year in financial markets, writes markets editor Katie Martin, as she rounds up the standout market moments of 2021.
Looking ahead George Steer and Chris Flood look ahead to the big questions for the markets in 2022.
South Korea politicians raise concerns over crypto brain drain South Korean politicians are calling on public officials to stop joining crypto companies for bigger pay cheques as exchanges race to bolster compliance divisions. Rising numbers of financial regulators and police officers are leaving the public service for crypto groups.
What to watch, listen to and play over the holidays
Films, TV shows, pop and classical albums, podcasts and games, our critics round up the 2021 highlights. What have you enjoyed this year? Tell us in the comments below these stories.
Source: Economy - ft.com
