Omicron will not disrupt the rally for global stocks, according to an outlook by JPMorgan Chase & Co. strategists, adding a cautious tone of optimism in the market.
- In a note, strategists led by Dubravko Lakos-Bujas and Mislav Matejka stated that the emergence of Omicron should be viewed as sporadic setbacks.
- The strategists further stated that they expect post-Covid normalization to persist in asserting itself globally in 2022.
- European and Asian stocks had dropped on Tuesday after Moderna Inc executives stated that the omicron COVID-19 variant could evade the current vaccines.
- Research is still undergoing to confirm whether the new strain is as virulent as its previous ones, as developers including Moderna, Pfizer Inc, and BioNTech SE are developing updated versions of their shots.
The strategists anticipated European equities are expected to perform better than the emerging markets and to beat US and Chinese stocks.
S&P 500 down -0.48%, DJI down -0.57%Source: Bloomberg
