Daily Market Commentary 29th November 2021

Markets collapsed overnight, to close out a short trading week, due to Thanksgiving and Black Friday. The emergence of yet another variant of the virus, in the media, sparked a sell-off in risk assets. Global equities suffered their biggest losses for the year, while US Bond Yields collapsed, hurting the US Dollar. The new mutated variant is a continuation of the viral saga. We have gone from Alpha to Delta  and India to Botswana. The fear factor is immense, with the prospect of official intervention, closing economies and societies. We have all seen this play out over the last couple of years. US 10 Year Bond Yields crashed to 1.48%, from 1.65%, while the surging US Dollar suffered accordingly. The EUR rallied to 1.1320, while the GBP pushed back to 1.3350, despite surging infection levels in Europe.

The coming week will provide an avalanche of global economic data releases, culminating in the US Non Farm Payrolls number. Growth and Inflation remain key indicators and this current virus scare will impact future growth prospects. The commodity currencies suffered growth and demand fears, with the AUD falling to 0.7100, while the NZD crashed to 0.6800. The inflation reality is beginning to play out in markets.