Global stock markets ended last week mostly higher, with the major US S&P 500 Index closing Friday at an all-time high. The index’s futures have continued to trade higher as this week opens. It is likely we will see higher prices in the index over the coming days due to this bullish trend which is showing some momentum. Bullish sentiment on risk is supported by the increasing likelihood of Chinese central bank stimulus next year and a belief that the spread of the omicron coronavirus variant is unlikely to be very damaging economically. Friday’s data showing US inflation at a 39 year high seems to have had no negative impact on risk sentiment (SPX, NDX, DIA).

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The Forex market has opened the week trading quietly and uncertainly on low volatility. There is no clear direction and Forex traders will probably do best staying out of the market today or scalping bounces off any key support or resistance levels which border clear consolidation patterns.

The omicron coronavirus variant is spreading rapidly in the UK and Denmark. The British government announced yesterday that it would try to vaccinate half its eligible adult population by the end of this month, as it believes that full vaccination plus a booster shot is required to ensure a high level of protection against serious disease from the new variant. This will require 1 million vaccinations per day.

Last week saw the first global weekly fall in new confirmed coronavirus cases after two months in which cases rose steadily.

It is estimated that 56% of the world’s population has received at least one dose of a coronavirus vaccination.

Total confirmed new coronavirus cases worldwide stand at over 270.4 million with an average case fatality rate of 1.97%.

The rate of new coronavirus infections appears to now be increasing most quickly in Australia, Canada, Denmark, Finland, Italy, Jordan, South Korea, Liechtenstein, Luxembourg, Mali, Nigeria, Norway, Portugal, San Marino, South Africa, Sweden, Switzerland, Trinidad, and the UK.