1. Will this stock market fear last?
Wall Street has stopped stressing out about the Omicron variant but the question is: will this lack of stock market fear last? US stocks rose on Wednesday, the first trading day of December, as certain companies that benefit from the economic reopening reversed some of their recent losses. This is a sign that the market thinks the new Coronavirus variant won’t lead to lockdowns. However, it could be weeks before drug companies give their vaccines the tick of approval, so expect stock market volatility until then.

2. China’s news frightens Frydenberg!
China is planning to reduce its dependency on Australia as a major supplier of iron ore, which will frighten Treasurer Josh Frydenberg China will boost domestic iron ore production by 30%, significantly ramp up investments in overseas mines and strengthen scrap steel recycling under a plan designed to break Beijing’s dependency on Australia’s most valuable commodity export. Iron ore company tax revenue gave the Treasurer $15 billion.

3. Aussie economy doing well
The Australian economy contracted in the September quarter by 1.9% but this was better than expected. The Australian economy, as measured by gross domestic product (or GDP) contracted by 1.9% in the September quarter, reflecting lockdowns. The survey economists thought the pullback would be -2.9% and some tipped -4%, so the result is a good sign that the economy is more resilient than many expect. The economy was up 3.9% for the 12 months to the end of September.

4. Returns from leading superannuation funds show it pays to be green
Data from the top 13 super funds shows that funds seen as sustainable leaders now control 42% of the $2.4 trillion retirement pool, up from 28% in 2019. What’s more, returns from ESG funds have outperformed rivals of three, five and seven years. Australians “are moving their money to reap not only the benefits for society and the environment, but their retirement savings as well,” Responsible Investment Association Australasia’s CEO Simon O’Connor said. “Super funds that are doing responsible investment well are seeing their funds grow, leaving laggards at risk of losing market share.” 

5. ASX to drop amid Wall Street’s poorest performance since October
Following the news that the omicron strain has arrived on US shores, New York markets trended downwards in its worst two-day rout since October. ASX futures were down 28 points or 0.4% to 7211 near 7.10am AEDT, reversing earlier gains. The AUD edged down towards 70 US cents. On Wall St near 3.15pm: Dow -0.3%, S&P 500 -0.1%, Nasdaq -0.7%.