The ‘Santa Claus Rally’ continues, as the omicron variation of the virus, appears to have far more bark than bite. The markets are open, but trading on very light in volume and the lack of serious damage (in terms of hospitalisations and deaths), has given markets a reason to rally. US equities approach record highs, while commodity demand surged, with Oil hitting USD$75.70/barrel. The rally in commodities ensured the AUD consolidated above 0.6800, while the NZD struggled to hold 0.6800.
European markets were mixed, as Governments imposed serious restrictions, to combat the spread of the virus. There have been lockdowns in Austria and Germany and various restrictions across the continent. The EUR drifted below 1.1300, while the GBP regained 1.3400, in light trade.
Current conditions are expected to prevail, throughout the Christmas New Year period, save any Black Swan event.