New Covid-19 variant Omicron

The new Covid19 variant, Omicron, shook markets on Friday, and Monday’s recovery is only partial. _ The lack of data so far on Omicron makes any assessment difficult. WHO has classified it as a “virus of concern” because of its high number of mutations. How this will affect contagion and the severity of the disease is not yet clear. Anecdotal evidence from South Africa suggests mild illness, but this shouldn’t be taken for granted. Until further data becomes available, markets are likely to stay volatile. For equities there are two twists to the story. If growth forecasts were to decrease, so would the likelihood of immediate monetary tightening