LONDON: Stock markets reversed most of last session’s losses on Wednesday, as investors used the fall in prices by placing the latest bets in early December. COVID-19 The variant will not derail the economic recovery.
NS EuroStokes Britain’s FTSE 100 rose 1.24% and Germany’s DAX 1.39%. Wall Street futures pointed to a strong open with both the S&P 500 and Nasdaq 100 rising more than 1%.
MSCI shares around the world were up 0.48% by 1120 GMT on Wednesday, up 1.5% the previous day after investors feared warnings from drugmaker Moderna that the current vaccine was unlikely to be effective against the Omicron variant. Is.
Countries have responded by imposing restrictions and travel bans on certain parts of the world.
global market After the Federal Reserve chair on Tuesday also came under selling pressure Jerome Powell He said asset purchases may need to be sharply reduced to fight rising inflation.
In Asia, shares rose 1.1% as traders reversed course after a sharp sell-off a day before taking the regional benchmark to a 12-month low.
“We expect the market’s focus to gradually shift away from Omicron and toward a positive growth and earnings trajectory, allowing equities to resume their upward trend, and more particularly for some cyclical markets in the recent past. Japan, the eurozone, energy, and financials, “to outperform,” said Mark Heffele, chief investment officer at UBS Global Wealth Management.
Oil also rose after a sharp fall in the previous session ahead of the meeting of the Organization of the Petroleum Exporting Countries (OPEC).
US West Texas Intermediate (WTI) crude futures rose 3.88% to $68.75 per barrel. Brent crude futures rose 4.54% to $72.37 a barrel, but remained below the $82 a barrel level seen last week.
increasing yield
Despite the bullish sentiment on Wednesday, some analysts said it would be prudent for markets to focus on Fed Chair Powell’s latest comments.
He said on Tuesday that US central bankers would discuss whether to end their bond purchases a few months earlier in December.
“Currently the market focus is on Omicron and its potential to disrupt the world, but the real focus should be on the Fed and rate policy. This is the biggest blow to come out of the last day,” he said. Kerry CraigGlobal Market Strategist at JPMorgan Asset Management.
Powell’s comments had pushed US Treasury yields higher, particularly at the shorter end of the curve.
Yields on the two-year notes, which reflect short-term interest rate expectations, rose to 0.622% on Wednesday, down from 0.4410% on Tuesday, when traders speculated that the new version could lead to a more liberal Fed. ,
The 2-year yield was last trading up 1 basis point at 0.603%.
Benchmark 10-year notes last stood at 1.494%, higher than Tuesday’s two-and-a-half-month low of 1.444%.
Rising yields in the United States stabilized the dollar against most peers and gained ground on the Japanese currency. It rose 0.2% to 113.38 yen compared to the safe haven yen, thanks to a risk-friendly mood.
The EUR/dollar was trading flat at $1.133, bringing the single currency close to last week’s 17-month low of $1.1186.
Improved sentiment helped the Australian dollar, which rose 0.4% from Tuesday’s 13-month low.
Risk-sensitive emerging market stocks and some currencies rose. The Turkish lira almost jumped 5% from record lows after the central bank intervened because of “unhealthy” market prices.
Despite all the enthusiasm, safe haven demand remained lower with gold trading up 0.7 per cent at $1,786 an ounce.
NS EuroStokes Britain’s FTSE 100 rose 1.24% and Germany’s DAX 1.39%. Wall Street futures pointed to a strong open with both the S&P 500 and Nasdaq 100 rising more than 1%.
MSCI shares around the world were up 0.48% by 1120 GMT on Wednesday, up 1.5% the previous day after investors feared warnings from drugmaker Moderna that the current vaccine was unlikely to be effective against the Omicron variant. Is.
Countries have responded by imposing restrictions and travel bans on certain parts of the world.
global market After the Federal Reserve chair on Tuesday also came under selling pressure Jerome Powell He said asset purchases may need to be sharply reduced to fight rising inflation.
In Asia, shares rose 1.1% as traders reversed course after a sharp sell-off a day before taking the regional benchmark to a 12-month low.
“We expect the market’s focus to gradually shift away from Omicron and toward a positive growth and earnings trajectory, allowing equities to resume their upward trend, and more particularly for some cyclical markets in the recent past. Japan, the eurozone, energy, and financials, “to outperform,” said Mark Heffele, chief investment officer at UBS Global Wealth Management.
Oil also rose after a sharp fall in the previous session ahead of the meeting of the Organization of the Petroleum Exporting Countries (OPEC).
US West Texas Intermediate (WTI) crude futures rose 3.88% to $68.75 per barrel. Brent crude futures rose 4.54% to $72.37 a barrel, but remained below the $82 a barrel level seen last week.
increasing yield
Despite the bullish sentiment on Wednesday, some analysts said it would be prudent for markets to focus on Fed Chair Powell’s latest comments.
He said on Tuesday that US central bankers would discuss whether to end their bond purchases a few months earlier in December.
“Currently the market focus is on Omicron and its potential to disrupt the world, but the real focus should be on the Fed and rate policy. This is the biggest blow to come out of the last day,” he said. Kerry CraigGlobal Market Strategist at JPMorgan Asset Management.
Powell’s comments had pushed US Treasury yields higher, particularly at the shorter end of the curve.
Yields on the two-year notes, which reflect short-term interest rate expectations, rose to 0.622% on Wednesday, down from 0.4410% on Tuesday, when traders speculated that the new version could lead to a more liberal Fed. ,
The 2-year yield was last trading up 1 basis point at 0.603%.
Benchmark 10-year notes last stood at 1.494%, higher than Tuesday’s two-and-a-half-month low of 1.444%.
Rising yields in the United States stabilized the dollar against most peers and gained ground on the Japanese currency. It rose 0.2% to 113.38 yen compared to the safe haven yen, thanks to a risk-friendly mood.
The EUR/dollar was trading flat at $1.133, bringing the single currency close to last week’s 17-month low of $1.1186.
Improved sentiment helped the Australian dollar, which rose 0.4% from Tuesday’s 13-month low.
Risk-sensitive emerging market stocks and some currencies rose. The Turkish lira almost jumped 5% from record lows after the central bank intervened because of “unhealthy” market prices.
Despite all the enthusiasm, safe haven demand remained lower with gold trading up 0.7 per cent at $1,786 an ounce.
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