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Weekly Markets Review

SEVEN DAYS MARKET
04 – 10  DECEMBER 2021
In Essence:
EQUITIES RALLY ENDS; GLOBAL PUBLIC DEPT STEADY; USD/EUR AROUND 1.13; BITCOIN <$50K
Equities:
US U.S. stock futures were little changed in early premarket trade on Friday after investors pulled back from the rebound earlier in the week and switched focus to upcoming inflation prints.
EU European stock markets edged lower Friday, handing back some of the week’s strong gains as investors assess the impact of the Omicron COVID variant and disappointing U.K. GDP numbers.
China Hang Seng recoups US$128 billion of market value as Alibaba leads three-day advance on China easing bets. Hang Seng Index logged the longest winning streak in three weeks.
Debt:
Sovereign Global public debt is estimated to stand at 97.8 percent of the world’s gross domestic product in 2021, 0.8 percentage point lower than a year before but still at record-high on the back of massive fiscal response to COVID pandemic, the IMF said Wednesday.
Corporate China Evergrande credit rating was cut to “restricted default” by Fitch Ratings, the first time the developer has been officially labelled a defaulter , over its failure to make two coupon payments by the end of a grace period on Monday.
FX:
USD/EUR EUR/USD pares recently losses around 1.1300 during a sluggish Asian session on Friday. The major currency pair dropped the most in two weeks the previous day as talks over the European Central Bank’s (ECB) support for extended easy money policies turned virus.
Standouts Demand for EURO downside exposure wanes this week as investors now focus on the upcoming decisions from the Federal Reserve and the ECB.  There is a less a less bearish outlook for the common currency three weeks out.
Commodities:
Oil Oil prices drifted down on Friday as traders locked in profits from a strong run-up this week, stoked by growing confidence that the rapid spread of the omicron coronavirus variant would not hit global growth and fuel demand.
Gold Gold prices edged higher on Friday but were headed for a fourth straight weekly fall as investors kept to the sidelines ahead of key U.S. inflation data that could influence the Federal Reserve’s next policy move.
Emerging Markets:
Cryptos Bitcoin fell toward $48,000 on Thursday, sliding nearly 5% after hovering over $50,000 for much of the previous two days. Trading volume of the No.1 cryptocurrency by market capitalization across major centralized exchanges, however, continued to drop.
COVID 19 Face coverings are now compulsory in most indoor venues in England, under measures to tackle the Omicron variant. The new rules require people to wear masks in locations including theatres, cinemas, places of worship, museums and indoor sport stadiums.