Investors cautious over latest Omicron developments
Global share markets traded lower on Friday, from Beijing to New-York, as the consolidation continued following recent gains earlier this week. Investors chose to be cautious for the last trading session of the week, especially after the latest virus developments showed the Omicron strain spreads faster than the Delta variant. In addition, investors are waiting for key macro data, with the forthcoming speech by ECB President Christine Lagarde as well as the latest US inflation report due. This US CPI, due later today, is seen as highly important by most market operators as it could give significant hints on what the Fed may do at next week’s policy meeting. That said, today’s consolidation isn’t really threatening the stock rally as the price action remains slower than the previous trading sessions and no significant support level has been broken yet. However, this doesn’t mean the current very short-term correction is over. Technically speaking, it would make sense for most EU benchmarks to slightly extend the current correction to further lows, as many bull traders may be waiting for the markets to hit major support zones before increasing their exposures.
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