Monday, January 24

Stocks rise as virus studies raise hopes of recovery: markets wrap up


Stocks advanced Thursday after the latest coronavirus studies raised hopes that the global recovery could weather the omicron outbreak.

Cyclical sectors such as travel and leisure and auto boosted European stocks, while gains in Japan helped MSCI Inc.’s Asia-Pacific indicator rise for a third day. Contracts in the US were flat after the S&P 500 closed at its all-time high. Trading volumes declined in many markets before Christmas.

Investor bets are rising: The latest variant of Covid-19 won’t derail global growth, even as officials remain cautious about its spread. A trio of studies indicated that omicron is less likely to take patients to hospital than delta, while laboratory results indicated that a third dose of the AstraZeneca Plc vaccine significantly increased antibodies against the strain. Additionally, the Covid-19 pill from Pfizer Inc. obtained authorization for emergency use in the US.

Dollar and Treasury yields were stable.

“Markets hate uncertainty and not knowing, and when omicron hit the markets, we didn’t know it,” Carol Schleif, deputy chief investment officer for the BMO Family Office, said on Bloomberg Television. “But it seems like he’s getting closer to something more positive.”

A gauge of global equities is up more than 2% so far this month, leaving the index 15% higher for the year and on track to beat the 2020 gain. However, markets have been volatile as of late as traders assessed virus risks, a tighter policy to control high inflation, and a hazy outlook for the $ 2 trillion US economic plan.

“Our outlook for the global economy remains positive, but we have a preference in developed markets,” said Janet Mui, chief investment officer at Brewin Dolphin Limited, in an interview with Bloomberg TV. “Economic recovery will continue in major economies such as the US, the UK and the euro area, thanks to very high vaccination rates and the ongoing launch of booster doses.”

Elsewhere, crude reversed a previous gain, while Bitcoin slid toward $ 48,000. European gas slumped as much as 10% as at least 10 shipments of American supplies headed to Europe, helping to offset the lowest flows from Russia.

Technology shares in Hong Kong fell amid a slide at JD.com Inc. over Tencent Holdings Ltd.’s plan to distribute shares in the online retailer as a single dividend.

What to watch this week:

  • Bank of Japan Governor Haruhiko Kuroda speaks Thursday
  • Initial US Unemployment Claims, Personal Income, Durable Assets, University of Michigan Consumer Sentiment, New Home Sales Thursday
  • Friday: US markets are closed. UK markets close earlier

Some of the main movements in the markets:

Stocks

  • The Stoxx Europe 600 was up 0.2% at 8:20 am London time.
  • S&P 500 futures changed little
  • Nasdaq 100 futures changed little
  • Dow Jones Industrial Average futures changed little
  • The MSCI Asia Pacific Index rose 0.8%
  • The MSCI emerging markets index rose 0.8%

Coins

  • The Bloomberg Dollar Spot Index was little changed
  • The euro changed little to $ 1.1322
  • The Japanese yen fell 0.1% to 114.27 per dollar
  • The offshore yuan changed little to 6.3758 per dollar.
  • The British pound was up 0.2% at $ 1.3373.

Captivity

  • The 10-year Treasury yield changed little to 1.46%.
  • Germany’s 10-year yield changed little to -0.29%
  • UK 10-year yield advanced two basis points to 0.90%

Raw Materials

  • Brent crude fell 0.2% to $ 75.11 a barrel
  • Spot gold rose 0.2% to $ 1,807.20 an ounce

© 2021 Bloomberg


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