Just as the world is concerned and confused with the newly discovered Omicron, Fed Chair Jerome Powell stirred up the markets further, by talking up faster tapering. The biggest reactions were found in US treasury yields on strong safe-haven flows. Major stocks indexes also turned sharply lower, solidifying the case of medium term correction. In the currency markets, Swiss Franc and Yen ended as the biggest winners followed by Dollar. Australian Dollar was the worst, followed by New Zealand Dollar and then Sterling. Current developments suggest that for the near term, there will be more downside in stocks and more so in yield. Yen and Swiss Franc would likely to outshone the others. |
