Daily summary: Wall Street falls after first case of Omicron was discovered in California

• European equities partially recover from recent sell-off
• First case of the new Omicron variant confirmed in the US
• US crude stocks drop less than forecast
• Oil prices lower ahead of OPEC decision

European indices finished today's session higher, attempting to recover recent losses. DAX 30 rose 2.47% at 15,506 and other major bourses added between 1.7% and 2.8%. However moods worsened in the evening, after Chancellor Merkel said, that in her opinion, the new German government should impose restrictions on the unvaccinated, similar to those in Austria and Greece. On the data front, the final Markit PMI survey for the Eurozone's manufacturing sector pointed to another month of strong expansion in the bloc's economy, while German retail sales for October disappointed.

US indices launched Wednesday's session higher however moods quickly deteriorated. During today's hearing Powell reiterated his view that inflation can no longer be viewed as a temporary phenomenon. Powell and Williams later gave signs that a faster tapering of the QE program could be expected, even despite the risks associated with Omicron. Williams also pointed out that Omicron may cause larger supply shocks which are responsible for the current high price dynamics.  In the evening US health officials confirmed the country’s first case of the new Omicron strain in California, which weighed on market sentiment. On the data front, ADP report showed private businesses in the US hired 534k workers in November, compared with a downwardly revised 570k increase in October, above expectations of a 500k rise. The ISM Manufacturing PMI in the United States rose up to 61.1 in November, from 60.8 in the previous month and slightly above analysts’ expectations of 61.0. The latest reading indicated expansion in the manufacturing sector for the 18th month in a row after a contraction in April 2020, even as factories continued to struggle with pandemic-related shortages of raw materials.

Oil prices moved higher during Asian and European session, however buyers were unable to keep the momentum in the afternoon. It seems that investors are probably waiting for further moves from OPEC +. The cartel opened its meeting today and the decision regarding production limits will be known tomorrow. Today's information says that OPEC + did not discuss policy changes due to large uncertainties related to the coronavirus. Nevertheless, low prices may encourage OPEC + to act faster. Additionally, data on US crude oil inventories disappointed. Crude oil stocks fell less than expected and gasoline stocks rose sharply. It is also worth mentioning that Biden announced that fuel prices will drop in the near future due to steps taken by the authorities. Mixed moods prevail on the precious metals market. Gold partially erased early gains but is still trading 0.50% higher, while sliver slumped more than 2% amid weaker dollar and lower treasury yields.

Silver price fell sharply after an unsuccessful attempt of breaking above psychological resistance at $23.00. If current sentiment prevails, the downward move may be extended to the major support at $22.00 which is marked with lower limit of the 1:1 structure and previous price reactions. Source: xStation5