Dead cat bounce?
Meow.
It’s early in the day and the market is still digesting the drastic moves from Friday, where risk trades were beaten, battered and clobbered across the board.
European futures are pointing to gains around 0.7% to 0.9% while S&P 500 futures are up 0.7% (Nasdaq futures up 1.0%, Dow futures up 0.4%).
That points to a decent start going into European morning trade but a lot of that will depend on sentiment involving the Omnicron variant. Border closures and any lockdown measures are going to be the thing to watch, as optimists will cling on to the hope that “no news is good news” when it comes to the latest episode of the COVID-19 saga.
Elsewhere, oil is up over 4% to just above $71 but that pales in comparison to the 13% plunge – its worst day this year – suffered at the end of last week.
There is a sense that Friday’s moves may be exacerbated by thinner markets in general but keep in mind that we also have month-end trading to deal with over the next two days so that might not make it easy to read into things.
That said, considering the significance of the Friday moves, that is likely to keep the main focus in trading today on the risk mood more than anything else.