The ISM Non-Manufacturing PMI for the US jumped to 69.1 in November 2021 from 66.7 in the previous month, easily beating market expectations of 65 and indicating the fastest pace of expansion in the services sector since the series began in 1997. Both business activity and new orders rose at record rates, while the pace of job creation quickened sharply. Meanwhile, supply chain issues continued to challenge output growth and prices paid by services industries remained high.

US stocks fell sharply on Friday, amid mixed economic data along with a series of hawkish remarks by Federal Reserve officials, while fears over the new Omicron Covid-19 variant mounted. A stronger-than-expected ISM report reignited fears of inflationary pressure and rising interest rates. At the same time, the US economy added the least jobs this year 210k (vs 550k, expected), the unemployment rate eased more than expected to 4.2%, while the labor force participation rate ticked up to 61.8%. The technology-heavy Nasdaq Composite plunged as much as 1.9% to the lowest since October 18th, dragged down by Apple and Meta Platforms Inc losses. The iPhone maker slipped on news that at least nine US State Department employees had their iPhone hacked. Meanwhile, the S&P dropped 0.9% to trade near levels not seen since October 15th, amid a sharp fall in big techs stocks. At last, the Dow Jones slipped 0.2%, partially offsetting last session gains.

WTI crude futures erased early gains to fall towards $66 a barrel on Friday, after rising as much as 2% to above $68 tracking a sentiment of risk-off that took hold in markets. Early, a more bullish oil market was sustained by OPEC+ remarks, saying that are ready to quickly adjust output plans if demand suffered from measures to contain the Omicron variant. In the previous session, OPEC+ surprised markets when it stuck to plans to add 400,000 bpd supply in January, seen by analysts as a move meant to appease Washington. US deputy energy secretary David Turk previously said President Biden’s administration could adjust the timing of its planned release of strategic crude oil stockpiles if global energy prices drop substantially. Meanwhile, the producers have since calmed markets, saying they would meet again before their next scheduled meeting on Jan. 4, if needed, to review supply additions in light of virus-related developments. WTI crude is on track for its sixth weekly decline.

European stock markets erased early gains and closed near 2-month lows on Friday, in a volatile end of week that saw miners shed roughly 3%, as investors digested weaker-than-expected US non-farm payrolls. The US economy added just 207 thousand jobs in November, the smallest addition since a 306 thousand shedding in December 2020. Meanwhile, concerns over the new Omicron coronavirus variant, mounting inflationary pressure and prospects of early tapering by the US Federal Reserve continued to drive volatility in markets. In corporate news, US competition authorities are seeking to block Nvidia's $80 billion bid for British chip technology provider Arm, while Australian biopharmaceutical giant CSL is in exclusive talks to buy Swiss drugmaker Vifor Pharma in a $7 billion deal. For the week, the pan-European Stoxx 600 erased 0.5% and Frankfurt’s DAX took a 0.9% loss, while London’s FTSE 100 stood out with a 0.9% rise.

Toronto’s main stock index, the S&P/TSX, slipped 0.6% to close at 20,639 on Friday, partially offsetting last session gains, as investors digested a mixed US jobs report and concerns over the new Omicron Covid-19 variant, along with a series of hawkish remarks by Federal Reserve officials. Across the border, labor market data from the world’s largest economy disappointed with only 201 thousand jobs added last month against expectations of a 550 thousand increase in the workforce. In contrast, the Canadian employed population increased by 153.7 thousand persons in November, far outstripping market expectations of a 35 thousand expansion, while the jobless rate fell to 6%, less than forecasts of 6.6%. On the earnings front, Bank of Montreal reported better-than-expected Q4 earnings and raised dividends by 25% to C$1.33 per share, in line with its national peers.

The main Sao Paulo stock index, Bovespa, edged 0.3% higher to close at 104,823 on Friday, the highest since November 25th and extending gains for a second straight session, with Méliuz, Locaweb, and Cyrela among the top performers. Meanwhile, investors digested a mixed US jobs report and concerns over the new Omicron Covid-19 variant, along with a series of hawkish remarks by Federal Reserve officials. Domestically, the PEC of Precatorios was approved in both rounds in the Senate and now goes back to the Lower House to be voted again as some changes were made. On the data front, Brazil's industrial production unexpectedly fell for a fifth straight month in October, while a Markit PMI survey showed the country's private sector growth slowed in November, as the services sector grew less and manufacturing activity contracted.