Important economic indicators are due in the US today, including the ADP labor market review - 1.12.2021

The US dollar index declined on Tuesday amid the spread of the new variant of the Omicron coronavirus. Pharmaceutical company Moderna Inc. stated that current vaccines may not be effective. This has raised concerns among investors. Later, the US dollar won back some of the losses thanks to Fed Chair Jerome Powell's words that monetary tightening could accelerate despite the risks of another wave of the Covid-19 epidemic. Remember that in November, the Fed decided to monthly reduce the volume of monetary emission directed to the purchase of assets (Quantitative Easing, QE) by $ 15 billion. The total volume of this program was initially equal to $ 120 billion per month. Investors do not rule out that the Fed may increase the monthly asset tapering at its next meeting on December 15, 2021. The euro strengthened as German unemployment dropped to 5.3% in November, the lowest since March 2020. The strong growth of inflation in the Eurozone in November of 4.9% in annual terms also contributed to the strengthening of the euro. This increases the likelihood of a tightening of monetary policy by the ECB. Inflation in Germany in November peaked since 1992 at 5.2%. Bitcoin quotes have remained stable as the decline in global hydrocarbon prices may support cryptocurrency mining.

American stock indices dropped yesterday. Fed Chairman Jerome Powell announced plans to curtail monetary stimulus to the American economy despite the risks of a new global wave of the coronavirus epidemic due to the emergence of the Omicron strain. In addition, weak economic indicators of consumer and producer activity came out in the US: CB Consumer Confidence and Chicago PMI. Shares of pharmaceutical companies Moderna (-4.4%) and Regeneron (-2.7%) fell in price amid doubts by their representatives about the effectiveness of vaccines and drugs for the new variant of the Omicron coronavirus. In contrast, Pfizer said its vaccine could be effective. This led to an increase in the quotations of this company by 2.5%. Important labor market data for November ADP Employment Change from the independent agency ADP is due in the US today. They may clarify the forecast of the official report on the labor market United States Nonfarm Payrolls, which will be released on Friday. In addition, Markit Manufacturing PMI Final, ISM Manufacturing PMI, Construction Spending and US Fed Beige Book will be published in the US today. Preliminary forecasts are positive and now futures for US stock indexes are on the rise.

Oil of course fell yesterday amid the emergence of a new variant of the Omicron coronavirus. Investors remember that last year's Covid-19 epidemic caused a global lockdown. Because of this, the volume of passenger and freight traffic has sharply decreased and, as a result, the demand for fuel. In April 2020, the price of Brent fell below $ 16 per barrel. However, today oil quotes have won back some of the losses. Investors are looking forward to the next OPEC + meeting, which will take place on December 2, 2021. They fear that against the backdrop of a collapse in oil prices, the cartel may suspend the planned increase in production by 400 thousand barrels per day from January 1, 2022. An additional positive was the message of the independent American Petroleum Institute on the decline in oil reserves in the United States for the week by 747 thousand barrels.