Tag Archives: ICE Brent Crude (Jan'22)

European markets positive despite omicron Covid variant fears

LONDON — European stocks are expected to start the new trading week far higher, despite extensive concerns over the newly discovered omicron Covid variant.

The U.K.’s FTSE index is seen opening 97 points higher at 7,137, Germany’s DAX 191 points higher at 15,437, France’s CAC 40 up 99 points at 6,824 and Italy’s FTSE MIB up 324 points at 26,167, according to data from IG.

European markets are set to soar at the open despite pressing concerns about the omicron variant that the World Health Organization labeled as a “variant of concern” last Friday.

While scientists continue to research the variant, omicron’s large number of mutations has raised alarm. Preliminary evidence suggests the strain has an increased risk of reinfection, according to the WHO.

The variant has been found in the U.K., Israel, Belgium, the Netherlands, Germany, Italy, Australia and Hong Kong, but not yet in the U.S. Many countries, including the U.S., moved to restrict travel from southern Africa.

Vaccine makers have announced measures to investigate omicron with testing already underway. While it remains to be seen how omicron responds to current vaccines or whether new formulations are required, Moderna’s Chief Medical Officer Paul Burton said Sunday the vaccine maker could roll out a reformulated vaccine against the omicron variant early next year.

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We’re preparing for a fourth wave of Covid from Europe: Emirates president

The president of Emirates has said he sees a fourth wave of the coronavirus pandemic coming from Europe which is concerning the airline.

Speaking to CNBC at the Dubai Air Show, Emirates President Tim Clark said: “I see a fourth wave coming through and we have all sorts of concerns about what may happen.”

“We’ve got to look at it very carefully, because if the European markets — which have already started to open in a big way — start to go the other way we’re going to have to deal with that. But we will deal with it … we’re very good at working around problems, and we’ll just do what we have to do,” he told CNBC’s Hadley Gamble.

Earlier this month, the WHO warned that Europe was once again the epicenter of the Covid pandemic. The region’s biggest economy, Germany, is currently reporting around 50,000 new coronavirus cases a day, and France has also reported a surge in cases. Austria, meanwhile, is expected to shortly impose lockdown restrictions on millions of unvaccinated people in an effort to contain rising infections.

Airlines have been hoping that the Dubai Air Show marks a turning point for the industry after a devastating period. It’s the first major aerospace exhibition to take place since the start of the coronavirus pandemic which saw travel restrictions across the world decimate the industry.

The International Air Transport Association said last month that the global airline industry is expected to lose almost $12 billion next year. The IATA, which represents nearly 300 airlines that operate more than 80% of the world’s air traffic, added that industry losses in 2020 were worse than originally thought, coming in at $137.7 billion.

However, Clark said that Emirates was already experiencing a significant pick-up in demand and had started to turn a profit.

“We’re bouncing back with a high degree of, dare I say, robustness,” he said. “Demand is coming back at such a pace that we’re frankly having difficulty trying to supply the assets because we’re short of pilots, we’re short of cabin crew, we’re short of just about everything. But there’s no shortage of demand, it’s a really good story.”

Clark highlighted the difficulties Emirates was facing in hiring enough staff to meet this demand, after it laid of swathes of staff amid the pandemic.

“You’re talking about supply chain disruptions, you’re talking about gross distortion in the labor markets,” he said, adding that he expected some sense of normality to return towards the end of 2022 and into early 2023. “I think then … the heat will come out of the situation. I hope, anyway.”

Another potential headwind for airlines is higher oil prices. The demand shock sparked by the Covid pandemic saw Brent prices fall to $20 a barrel; they’re now trading over $80 a barrel.

But Clark said he was not fazed. “Of course, $80 – we’ve been there before. We’ve been much higher than that before,” he added. “At the moment, we’re managing it. It’s anybody’s guess what’s going to happen; I think we’ve got about 15 months of turbulence, but we’ll be alright.”

— CNBC’s Leslie Joseph contributed to this report.

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China October exports growth, oil and currencies

SINGAPORE — Shares in Asia-Pacific were mostly lower in Monday morning trade as investors react to China’s trade data released over the weekend.

South Korea’s Kospi led losses among the region’s major markets, falling 1.19%.

Mainland Chinese stocks were also lower, with the Shanghai composite down about 0.1% while the Shenzhen component slipped 0.231%. Hong Kong’s Hang Seng index dropped 0.79%.

The Nikkei 225 in Japan traded 0.2% lower while the Topix index fell fractionally. Australian stocks were also in negative territory, with the S&P/ASX 200 dipping 0.17%.

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Elsewhere, Taiwan’s Taiex was 0.13% higher while the Straits Times index in Singapore gained 0.82%.

MSCI’s broadest index of Asia-Pacific stocks outside Japan traded 0.38% lower.

Official data released over the weekend showed China’s exports surging 27.1% in October as compared with a year ago. That was higher than the 24.5% growth forecast by analysts in a Reuters poll.

Oil prices jump more than 1%

Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 1.52% to $84 per barrel. U.S. crude futures gained 1.45% to $82.45 per barrel.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 94.279 after recently declining from levels above 94.5.

The Japanese yen traded at 113.58 per dollar, stronger than levels above 114 seen against the greenback last week. The Australian dollar changed hands at $0.7392 after last week’s drop from above $0.75.

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