Only 10% of financial market players see new Omicron variant as significant event, Deutsche Bank survey finds
- A new flash poll by Deutsche Bank has shown that market players are not really concerned about Omicron.
- Only 10% of those polled see the new Omicron variant as the biggest topic in financial markets by the end of the year.
- When the World Health Organization labeled the new variant on Friday, the Dow plunged 905 points.
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As news of the new strain of coronavirus continued to grab the headlines, a new snap poll conducted by Deutsche Bank Research on Monday showed that most market participants are not really concerned about Omicron.
Only 10% of financial market participants consider the new variant to be the most important topic by the end of the year, based on 1,538 respondents surveyed on November 29.
About 60%, meanwhile, thought it would still be a problem but of moderate importance, while about 30% believe it will soon be forgotten.
“For full disclosure, I would have chosen B with a bias closer to A than to C, so I’ll be just as offside if Omicron changes the game,” said Jim Reid, research strategist at Deutsche Bank, in an email.
Reid, who sent the snap poll, said responses from the United States were slightly more optimistic with only 8% selecting option C. In Europe, around 10% chose this option while in the UK. Uni, it was 12%. Asia however led the pack as the most optimistic country, with just 4% of them having selected option C.
Friday, when the World Health Organization labeled the new variant, the Dow Jones Industrial Average, plunged 905 points – at its biggest Black Friday sellout since 1931.
But on Monday, US stocks rebounded and extended their gains. Many analysts have maintained their relatively bullish outlook for equities.
“As the initial shock wears off a bit, traders may look to opportunities,” said Chris Larkin, managing director of trading at E-Trade Financial. “But keep in mind, as COVID continues to be a serious threat, we are in a very different place than we were at the start of the pandemic in terms of medical advancements and the strength of our economy.”