Omicron is raging around the world and bringing a darker economic outlook with it. A surge in new cases caused stocks to sell off and oil prices to drop Monday morning. CNBC reports Dow futures fell more than 500 points. In other news, Chester Ntonifor, FX Strategist of BCA Research, told Kitco News that the dollar index will likely fall to 90 over the next 12 months.


CNN Business/Charles Riley
A one-two punch for the US economy

The outlook for the American economy is suddenly much darker.

Investors around the world sold stocks and oil prices dropped sharply on Monday as Omicron cases surged and governments imposed anti-virus measures that could hamper economic growth.

But the US faces a second potential blow after Sen. Joe Manchin, a Democrat, said on Sunday that he will not vote for President Joe Biden’s economic and climate plan.
Dow futures fell 370 points — or more than 1% — by 6:45 a.m. ET on Monday, while benchmark Brent crude was down about 3% at $71 a barrel. Major stock market indexes in Europe and Asia fell by around 2%.

“Global markets are pricing in … greater growth concerns on the back of the weekend’s Omicron-related news. Dimmed prospects for the US fiscal package may also be playing a role,” Mohamed El-Erian, chief economic adviser at Allianz, said Monday on Twitter.

Keep reading the story, here.


CNBC/Maggie Fitzgerald, Yun Li
Dow falls 500 points to start the week as omicron continues to spook markets

Stocks fell on Monday as investors continued to grapple with the resurgence of Covid cases and an upcoming shift in the Federal Reserve’s easy monetary policy.

The Dow Jones Industrial Average dropped 520 points, or 1.5%. The S&P 500 dipped 1.4% and the technology-focused Nasdaq Composite declined 1.6%. The small-cap benchmark Russell 2000 lost 2.2%.

Reopening plays were the biggest losers once again on Monday. Royal Caribbean shed 3%. United Airlines and Southwest fell 3.7% and 2.3%, respectively. Darden Restaurants also lost 3.5%. Booking Holdings was down more than 4%.

Moderna was higher by 6% after saying its vaccine booster dose provides significant protection against omicron.

Continue reading, here.


Kitco News/David Lin
Will the dollar really crash in 2022? FX strategist gives outlook on gold, silver, inflation

The Federal Reserve announced Wednesday a quickening of asset tapering and signaled three rate hikes in 2022.

Chester Ntonifor, FX Strategist of BCA Research discusses with David Lin, anchor for Kitco News, the direction of the U.S. dollar in the next year.

“It’s pretty priced in that the Fed is going to lift interest rates in 2022 and the ECB is going to lag the Fed, so that’s already in the price of the dollar versus the euro,” Ntonifor said.

You can watch the full interview, here.












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