Hong Kong: Asian markets were mixed on Friday. Traders tracked the development of the Omicron virus strain as it spread around the world and heightened concerns about economic recovery. At the same time, the Fed is preparing to withdraw it during the pandemic. Huge financial support.
Hong Kong is one of the main losers. U.S. officials passed a rule that allows them to withdraw foreign companies from Wall Street unless they provide certain information to auditors. This move is mainly aimed at Chinese entities, which makes several dual-listed technology giants. Take a hit.
Since the Omicron variant made headlines last Friday, the global market has been turbulent, worrying that it may spread more easily than the Delta strain and that the vaccine may be less effective on it.
Although some of the initial panic has subsided and some people believe that the situation may be milder and that vaccination will be effective, experts say it may take up to three weeks to fully understand the outlook and its possible economic impact.
At present, governments of various countries are proceeding cautiously, adopting new containment measures, including travel restrictions and some blockades. Observers worry that this may derail an already unstable recovery.
At the same time, central banks continued to tighten their belts and raised trillions of dollars last year to survive the initial shock of the pandemic. Some of these central banks have raised interest rates twice in the fight against soaring inflation.
The focus is now on the Fed. After months of claiming that the price spike is temporary, the Fed has now turned its attention to preventing price runaways and is preparing to tighten its belt.
Boss Jerome Powell said this week that the bank may accelerate the rate of reduction in its bond purchase program and then focus on raising borrowing costs.
Although these measures have been well communicated, investors now have to adapt to the end of the cheap cash era, which has been a key driver for the global market to rebound to record or multi-year highs in 2021.