(Paris) Global markets were uncertain on Friday, moving sometimes up, sometimes close to balance in the face of concerns around the Omicron variant.
The European indices which had rebounded sharply at the start of the session reduced their gains at midday. At around 7:10 a.m. EST, Paris was up 0.07%, London 0.41%, Frankfurt 0.24% and Milan 0.22%.
On the New York Stock Exchange, futures contracts for all three major indices were close to equilibrium.
In Asia, Tokyo and Shanghai gained 1% and 0.94% respectively. On the other hand, Hong Kong fell slightly (-0.09%), after a regulatory change made by the American financial market regulator which could force Chinese companies to leave the New York Stock Exchange.
“The wait for employment figures in the United States, published this afternoon, will keep investors busy, at least in the short term, after a turbulent week on the markets, marked by the coronavirus and its variants”, summarizes Jochen Stanzl, analyst for CMC Market.
The 8:30 a.m. EST jobs report will be scrutinized as it may confirm the prospect of faster-than-expected monetary tightening from the Federal Reserve (Fed).
The Fed has so far preferred to ensure the solidity of the recovery of the economy in the United States and the recovery of the job market.
However, US Central Bank Chairman Jerome Powell changed his tone on Tuesday, saying it was time to stop talking about transitory inflation. He envisions a faster-than-expected reduction in the institution’s asset purchases, paving the way for a hike in key rates from 2022 to limit inflation.
On the health front, investors continue to scrutinize any information regarding the new Omicron variant. Two scientific studies suggest an increased contagiousness, but “it remains to be seen what is its level of dangerousness and especially resistance to existing treatments”, underlines Sebastian Paris Horvitz, analyst at LBPAM.
In South Africa, where the identification of the Omicron variant was announced last week, authorities have described an “exponential” spread of the virus. The new variant is already dominant there.
The markets were already worried about the resurgence of the COVID-19 pandemic, even before the discovery of the Omicron variant. A fifth wave of contamination is affecting Europe, forcing some governments to take action. Germany on Thursday tightened restrictions on unvaccinated people.
Historic order for French armaments
The United Arab Emirates on Friday signed an agreement to acquire 80 Rafale fighter jets, the fighter plane built in collaboration by the French Dassault Aviation (+ 8.32%), which oversees 60% of the value of the plane, the electronics engineer Thales (+ 1.93%) and the engine manufacturer Safran (-2.27%).
The contract, described as “historic” by the Minister of the Armed Forces Florence Parly and the largest ever concluded with a foreign country, amounts to 16 billion euros, including two for armaments and “associated elements”.
Shell withdraws from controversial project
The oil giant Royal Dutch Shell gained 1.57% to 1659 pence after announcing its withdrawal from an oil field project off the Shetland Islands in Scotland disputed by environmental NGOs, citing an economic interest “not strong enough”.
Allianz increases its dividends
The insurance group Allianz (+1.55% to 200.35 euros) has announced its intention to “modify” its dividend policy, to now pay its shareholders “an amount at least 5% higher than that of the previous year ”.
Oil rebound, bitcoin stable
Oil prices were on the rise, the day after a summit by OPEC + producers which saw them renew in January the gradual increase in production carried out each month since May.
A barrel of North Sea Brent for February delivery was up 2.76% to $ 71.60 in London around 7 a.m. EST.
WTI’s US barrel for January delivery rose 2.45% to $ 68.13.
The euro appreciated 0.09% to $ 1.1312.
Bitcoin was stable (+ 0.38%) at $ 57,100.