Cailian News Agency (Shanghai, Editor Bian Chun) News: The emergence of a new strain of Omicron has caused turbulence in global markets in recent days. JPMorgan Chase & Co. pointed out that this may be good for risk markets, Investors should take this opportunity to plan for reop

Financial News Agency (Shanghai, Editor Bian Chun) News The emergence of a new strain of Omicron has caused turmoil in global markets in recent days. JPMorgan Chase Co. pointed out that this may be good for risk markets , investors should take this opportunity to plan for reopening and commodity trading.

Countries around the world have tightened travel restrictions after the new strain of Omicron was discovered, disrupting global financial markets. All three major U.S. stock indexes fell more than 1% on Wednesday as the first confirmed case of the Omicron variant in the United States heightened investor concerns.

According to statistics from industry insiders, Wednesday was one of the most volatile trading days for U.S. stocks in the past year, with the S&P 500 index's full-day amplitude (the ratio between highs and lows) hitting its highest level since March. Taking into account last Tuesday's sharp drop, the index has recorded its largest two-day drop since October 2020.

JP Morgan strategists Marko Kolanovic and Bram Kaplan wrote in a report released on Wednesday (December 1) local time that although Omi Chron may be more contagious, but early reports suggest it may be less deadly, consistent with historically observed patterns of viral evolution. They noted that this could ultimately be a boon for risk markets, as it could signal that an end to the coronavirus pandemic is in sight.

“Omicron could be a catalyst for a steepening (rather than flattening) yield curve, a market rotation from growth to value, a sell-off in pandemic and lockdown benefits, and a rebound in reopening headlines, ” the two strategists wrote. "We view the recent sell-off in these areas as an opportunity to buy on dips in cyclical stocks, commodities and reopening themes and position for higher bond yields and yield curve steepening."

follows As the epidemic evolves, Kolanovich called on investors to trade around reopening themes and defended value stocks. He also believes the market is overreacting to the threat of the Delta variant.

Strategists say a less severe, more contagious virus quickly crowds out more severe variants, fitting a historical pattern and that Omicron could be a catalyst that could turn a deadly pandemic into a pandemic. The pandemic transforms into something more akin to the seasonal flu.

"If this were to happen, instead of just skipping two letters and naming it Omicron, WHO would jump straight to Omega, the last letter of the Greek alphabet," they wrote.

Faced with the menacing mystery of Kron, health officials said it may take several weeks to make a judgment on the new strain. But early signs suggest Omicron is unlikely to cause serious illness. Australia's federal chief medical officer Paul Kelly said there was no indication this strain was more deadly than other strains.