Global markets get boost as Omicron worries fade

With fears fading that the Omicron variant will disrupt the global economic recovery, equity markets followed a buying-heavy course.

While Asian markets started the midweek in positive territory, US’ S&P and Nasdaq indices registered their strongest daily rises in nine months.

Technology stocks led the increase in the New York market.

Analysts said Pfizer’s announcement that vaccines in use provide partial protection against the Omicron variant supported the rally in equity markets, adding the news flow of the coronavirus disease 2019 (Covid-19) outbreak would determine the direction of the markets.

Developments in China’s real estate sector remain unclear and Chinese real estate giant Evergrande has yet to make some bond payments.

Analysts said Evergrande’s default was expected, and questions were being raised about how it would affect other companies.

On Tuesday, US President Joe Biden threatened to respond with “strong” economic measures if Russia escalates military aggression against Ukraine.

US National Security Advisor Jake Sullivan said Biden told his Russian counterpart Vladimir Putin that if Russia invaded Ukraine, the US would increase its military support to Ukraine and its NATO allies in the region.

On the Europe side, the 27-member bloc surpassed expectations and reached a gross domestic product growth rate of 3.9 percent in the third quarter on an annual basis.

On Wednesday, Japan’s economy narrowed 3.6 percent in the third quarter.

At the midweek, investors will follow statements from the European Central Bank’s governor and JOLTS (job openings and labor turnover survey) job figures in the US.

Source: Philippines News Agency

Related posts