Global equities soar as investors’ appetite for risk increases; oil settles

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Traders work in the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York, United States on December 17, 2021. REUTERS / Andrew Kelly

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  • Wall Street recovers losses from the previous session
  • slips of US dollars
  • Oil prices are gaining ground

NEW YORK, Dec.21 (Reuters) – Wall Street closed sharply higher on Tuesday after a deadly session the day before, with oil prices also rising as investors seek riskier assets despite the rise in cases of the Omicron coronavirus variant in the world.

US President Joe Biden said on Tuesday he would take action to combat the Omicron variant, opening federal testing sites in New York City and purchasing 500 million home tests that Americans can order online for free. read more Israel is preparing to offer a fourth dose of COVID-19 vaccination to people over 60 years of age. Read more

Global stocks had slumped earlier in the week after Omicron infections spiked around the world, but strong corporate earnings and reports that Moderna Inc’s (MRNA.O) COVID-19 vaccine offers protection against the variant gave hope to investors on Tuesday. U.S. stocks had also taken a hard hit after Biden’s $ 1.75 trillion spending bill received a potentially fatal blow on Sunday. Read more

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“We think it was a bit late for the past two weeks. We’re sort of ready for a rally in time for Santa Claus, which officially begins next Monday,” said Scott Brown, Technical Market Strategist at LPL Financial, explaining that a so-called Santa Gathering can take place during the last five trading days of the year and the first two of the New Year.

“We think we’ve had a bit of burnout. We’ve seen a lot of fear rush into the market.”

The Dow Jones Industrial Average (.DJI) rose 1.6% to 35,492.7, and the S&P 500 (.SPX) gained 1.78% to 4,649.23. The Nasdaq Composite (.IXIC) gained 2.4% to close at 15,341.09.

MSCI’s stock gauge across the world (.MIWD00000PUS) gained 1.61%.

Oil prices have stabilized by more than 3% despite signs of improving supply and fears that the Omicron spread could dampen travel and dampen demand for fuel.

Brent crude stabilized at $ 2.46, or 3.4%, at $ 73.98 a barrel, and U.S. West Texas Intermediate (WTI) crude rose $ 2.51, or 3.7% , at $ 71.12 per barrel.

The United States is considering reducing the quarantine time for people with COVID-19. Read more The CEO of Delta Air Lines (DAL.N) has asked the United States Centers for Disease Control and Prevention to reduce the quarantine time to five days instead of 10. Read more

A grim trading session in the United States on Monday highlighted market fears that rapidly rising cases of the coronavirus variant will again force governments around the world to impose lockdown measures, potentially stifling fragile economic recoveries of measures similar earlier in the year.

Still, on Tuesday, investors were cautiously optimistic the economic blow would be less severe this time around as they bought stocks and sold currencies perceived to be safe havens such as the dollar and Japanese yen.

The US dollar currency index edged down as investors invested money in riskier currencies. Read more

The yen, considered a safe haven, remained stable against the greenback at 114.08 per dollar.

U.S. Treasury yields rose on Tuesday as traders aimed for bullish economic conditions and dismissed inflation fears in a 20-year bond auction. Read more

Elsewhere, cryptocurrencies – which often provide a reliable indicator of risk sentiment – have gained ground. Bitcoin has added more than 4% after trending downward in recent weeks.

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Reporting by Jessica DiNapoli in New York Additional reporting by Tom Wilson in London and Julie Zhu in Hong Kong; Editing by Paul Simao and Matthew Lewis

Our standards: Thomson Reuters Trust Principles.


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