NEW YORK: Global stock markets rallied on Tuesday to allay fears over the dangers arising from the new omicron Covid-19 edition.
Meanwhile, oil prices edged higher as traders saw less impact from Omicron on energy demand, and the dollar edged higher.
London shares rose 1.5 per cent, while Frankfurt gained 2.8 per cent and Paris rose 2.9 per cent to have the best day of the year.
Key Wall Street indices also rose, with the tech-rich Nasdaq leading the way, rising more than three percent.
Asian stocks rose despite renewed concerns about possible loan defaults in China’s troubled asset sector.
Markets.com analyst said, “Markets were bullish on Omicron’s first sign, but are more confident now that it won’t be as bad as previously feared.” Neil Wilson,
“Risk appetite is improving as evidence supports the case that the Omicron version at the end of November will be less damaging to the economy.”
world stock And oil declined on 26 November, when news of the new version first appeared on traders’ screens.
After a rollercoaster ride since then, investors are now optimistic about the outlook for Christmas.
“It’s not like everything is perfect again,” said Patrick O’Hare, market analyst at Briefing.com.
“It’s just that things are less bad, which is an ideal assumption for a market that has seen some significant weakness beneath the surface of the index and believes things are over on those negative moves.”
Omicrons have been detected worldwide, but no deaths have been reported so far.
Officials around the world are racing to determine how contagious it is and how effective current vaccines are.
America’s top pandemic adviser Anthony Fauci told AFP on Tuesday that it would take weeks to judge the seriousness of the Omicron version, but early signs suggested it was no worse than earlier strains, and was possibly mild.
“It seems investors have made up their mind about Omicron,” said ThinkMarkets analyst Fawad Razakzada.
“They think it’s probably no more dangerous than the delta version of the coronavirus and that the preventive lockdowns and restrictions that we’ve seen will soon ease,” and “thus avoiding another major economic blow.”
The positive sentiment also spread to the oil trade, where the main US contract, the WTI, briefly rose 5 per cent.
Sentiments also rose on Tuesday as China’s central bank stepped up measures to limit the economic fallout from the debt crisis in the beleaguered asset sector.
Shares in Hong Kong jumped 2.7 percent and Tokyo jumped 1.9 percent, but Shanghai was only marginally higher.
Meanwhile, reports surfaced on Tuesday that evergrande was planning what could be China’s biggest debt restructuring, wrapping up all of its offshore obligations as it faced a default on a principal payment.
Its conflicts have fueled concerns about China’s property sector, which accounts for a large part of the world’s second-largest economy.
Another major asset player, Sunshine 100 China Holdings, also said it had missed the repayment deadline.
In response to the crisis, China’s central bank said on Monday it would cut the reserve requirement ratio by 0.5 percentage points for most banks, effective December 15.
The move reduces the amount of cash banks have to keep in reserves, which would allow 1.2 trillion yuan ($188.4 billion) to be injected into the economy, the central bank said in a statement.
Meanwhile, oil prices edged higher as traders saw less impact from Omicron on energy demand, and the dollar edged higher.
London shares rose 1.5 per cent, while Frankfurt gained 2.8 per cent and Paris rose 2.9 per cent to have the best day of the year.
Key Wall Street indices also rose, with the tech-rich Nasdaq leading the way, rising more than three percent.
Asian stocks rose despite renewed concerns about possible loan defaults in China’s troubled asset sector.
Markets.com analyst said, “Markets were bullish on Omicron’s first sign, but are more confident now that it won’t be as bad as previously feared.” Neil Wilson,
“Risk appetite is improving as evidence supports the case that the Omicron version at the end of November will be less damaging to the economy.”
world stock And oil declined on 26 November, when news of the new version first appeared on traders’ screens.
After a rollercoaster ride since then, investors are now optimistic about the outlook for Christmas.
“It’s not like everything is perfect again,” said Patrick O’Hare, market analyst at Briefing.com.
“It’s just that things are less bad, which is an ideal assumption for a market that has seen some significant weakness beneath the surface of the index and believes things are over on those negative moves.”
Omicrons have been detected worldwide, but no deaths have been reported so far.
Officials around the world are racing to determine how contagious it is and how effective current vaccines are.
America’s top pandemic adviser Anthony Fauci told AFP on Tuesday that it would take weeks to judge the seriousness of the Omicron version, but early signs suggested it was no worse than earlier strains, and was possibly mild.
“It seems investors have made up their mind about Omicron,” said ThinkMarkets analyst Fawad Razakzada.
“They think it’s probably no more dangerous than the delta version of the coronavirus and that the preventive lockdowns and restrictions that we’ve seen will soon ease,” and “thus avoiding another major economic blow.”
The positive sentiment also spread to the oil trade, where the main US contract, the WTI, briefly rose 5 per cent.
Sentiments also rose on Tuesday as China’s central bank stepped up measures to limit the economic fallout from the debt crisis in the beleaguered asset sector.
Shares in Hong Kong jumped 2.7 percent and Tokyo jumped 1.9 percent, but Shanghai was only marginally higher.
Meanwhile, reports surfaced on Tuesday that evergrande was planning what could be China’s biggest debt restructuring, wrapping up all of its offshore obligations as it faced a default on a principal payment.
Its conflicts have fueled concerns about China’s property sector, which accounts for a large part of the world’s second-largest economy.
Another major asset player, Sunshine 100 China Holdings, also said it had missed the repayment deadline.
In response to the crisis, China’s central bank said on Monday it would cut the reserve requirement ratio by 0.5 percentage points for most banks, effective December 15.
The move reduces the amount of cash banks have to keep in reserves, which would allow 1.2 trillion yuan ($188.4 billion) to be injected into the economy, the central bank said in a statement.
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