The overwhelming negative influence late in the month was the emergence of the Omicron covid-19 variant and doubts over the efficacy of existing vaccines against this strain and all that might imply for the global economic re-opening process.

NAB expects that the RBA will raise rates from mid-2023 with a relatively aggressive series of hikes thereafter.

It has been a volatile session overnight driven by differing headlines around vaccine efficacy, capped off by very significant hawkish tilt by US Fed Chair Powell in Senate Testimony.

Global markets have seen a modest retracement of many of last Friday’s violent ‘risk-off’ moves, with equities higher in Europe, so too US government yields up, as too is oil, but in all cases to nowhere near Friday’s closing levels.

Omicron uncertainty triggers a rethink on the global economic outlook

BoE’s Bailey still guiding that rates will need to be higher ahead of the Dec MPC meet.

Dovish Fed Official (Daly) flips to looking at accelerating tapering and to hikes in 2022

Eurozone PMIs spring upside surprise, supporting EUR and holding USD in check

Fed Monetary Policy Update.