Markets appeared calmer about the implications of the new Omicron variant. The S&P500 rose 1.6%, and the US dollar and bond yields consolidated above recent lows.

During a holiday-thinned trading session, markets flipped to risk-averse mode following news of a new Covid variant – Omicron. The S&P500 fell 2.3%, and bond yields and the US dollar are lower.

In a quiet session, given the US holiday, AUD and NZD probed slightly lower. The Eurostoxx50 closed up 0.4%. Sweden’s central bank kept its policy rate unchanged.

A solid set of US economic data boosted the US dollar and interest rates. The S&P500 is up 0.1% on the day.

The risk-averse mood in equity markets extended to a second day, the S&P500 currently down by 0.3%. Bond yields rose slightly further, while the US dollar is little changed.

The US dollar and bond yields rose after Fed Chair Powell was renominated for the role. The S&P500 is currently up 0.5% on the day.

Sentiment weakened amid fresh pandemic-related restrictions in Europe. The S&P500 closed down 0.1% on the day, and risk-sensitive currencies and bond yields fell. Some hawkish Fedspeak partly reversed the latter.

US equities shrugged off early losses, the S&P500 currently up 0.3% on the day. The improved sentiment weighed on the defensive US dollar.

A slightly risk-averse tone crept into equity and bond markets, the S&P500 down 0.1%. The AUD and NZD remained near one-month lows.

The US dollar rose following strong US retail sales and industrial production data. US equities also rose, the S&P500 up 0.7%.