There's a strong risk-off tone in financial markets today on omicron concerns coupled with the failure of the US Build Back Better legislation. I also don't rule out effects around year end.
The tell for me that omicron is what's driving the mood is oil, which is down 4.8%. Global crude demand isn't going to be affected much by US legislation or child care and prescription drugs. The environmental provisions are a long-term factor for oil but not for right now.
The virus is clearly spreading at an unprecedented level but the evidence is also mounting that it's a less-dangerous strain. I continue to focus on China as the real issue with omicron and how its covid-zero policy will quickly become untenable.
As for economic data, it's a whole lot of nothing on the North American calendar: No economic numbers, no central bankers. Perhaps something will pop up later.
