Omicron fuels the uncertainty in the financial markets

"The situation in the financial markets is now similar to a roller coaster ride, which is mainly due to the emergence of a new mutation of the coronavirus (Omicron)," Michał Milewski, fund manager at Generali Investments TFI, said.

This high volatility in the markets will persist as long as the news noise associated with the new variant fuels investors' fear. European indices are more exposed to price fluctuations. There are more companies in the new economy in the USA that are more resistant to possible lockdowns in the economy. US investors are now waiting for the Fed meeting scheduled for mid-December.

"The situation developed very quickly: on Thursday, November 25, a new, more contagious mutation was announced. This prompted an immediate reaction in the financial markets. Investors remembered the colossal impact of the epidemic on the economy in the most difficult months and began to withdraw rapidly. money," Michał Milewski said.

The biggest drops were recorded in the sectors most dependent on the open economy, i.e. airlines (drops by approx. 10%), oil (drop by 13% in one session), and the tourist industry.

(Newseria)