Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar, shares rise as Omicron fears subside

EconomyDec 02, 2021 05:28PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A man wearing a protective face mask, following an outbreak of the coronavirus, talks on his mobile phone in front of a screen showing the Nikkei index outside a brokerage in Tokyo, Japan, February 26, 2020. REUTERS/Athit Perawongmetha/File Ph 2/2

By Herbert Lash

NEW YORK (Reuters) - A gauge of global equities surged on Thursday as Wall Street rallied on hopes the Omicron COVID-19 variant will prove mild and will not halt a strongly recovering U.S. economy, while the dollar edged higher in choppy trading as risk appetite improved.

The number of Americans filing new claims for unemployment benefits rose less than expected last week while layoffs tumbled to a 28-1/2 year low in November, both signs of tightening U.S. labor market conditions amid an accelerating economy.

"People feel a bit more confident that while the new variant might be highly contagious, it looks like so far the conditions are mild," said Marc Chandler, chief market strategist at Bannockburn Global Forex.

The blue-chip Dow posted its best one-day percentage gain since March with Boeing (NYSE:BA) Co providing the biggest lift after China's aviation authority gave a seal of approval to the planemaker's 737 MAX aircraft.

MSCI's all-country world index closed up 0.75% as Wall Street rallied. The Dow Jones Industrial Average rose 1.82%, the S&P 500 added 1.42% and the Nasdaq Composite advanced 0.83%.

While U.S. investors saw Omicron as mostly benign, European shares fell as countries ramped up restrictions to curb the variant's spread and raised worries about its impact on the region's nascent economic recovery.

The broad STOXX Europe 600 index fell 1.15%.

The dollar's gains were limited as investors looked ahead to the non-farm payrolls report due on Friday for the state of U.S. employment in November.

Wall Street economists estimate the U.S. economy created 550,000 new jobs last month, a Reuters poll showed.

The dollar index, which tracks the greenback versus a basket of six currencies, rose 0.096% to 96.142. The euro was down 0.19% at $1.1298, while the yen traded up 0.36% at $113.1600.

U.S. Treasury yields edged up as investors returned to riskier assets, with 10-year Treasury notes rising 1.5 basis points to 1.449%.

The 10-year TIPS breakeven rate was last at 2.479%, indicating the market sees inflation averaging about 2.48% annually for the next decade, or lower than recent expectations.

Federal Reserve officials have been talking up a quicker end to the U.S. central bank's massive bond purchases as signs of faster inflation appeared.

Federal Reserve Bank of Atlanta President Raphael Bostic told the Reuters Next conference on Thursday it would be appropriate to conclude the tapering of bond-buying by the end of the first quarter of 2022.

"There are two camps in the market," Chandler said. "One camp agrees that inflation is out of control, but the other camp thinks that inflation is going to be temporary."

Oil prices settled higher after a see-saw session in which benchmarks swung in a $5 range after the Organization of the Petroleum Exporting Countries and allies surprised markets by sticking to plans to boost output slowly.

U.S. crude futures rose 93 cents to settle at $66.50 a barrel, while Brent oil futures settled up 80 cents to $69.67 a barrel.

Gold dropped over 1% to a one-month low as investors latched on to the Fed's plans to tighten monetary policy more quickly than expected to rein in rising consumer prices.

U.S. gold futures settled down 1.2% at $1,762.70 an ounce.

Dollar, shares rise as Omicron fears subside
 

Related Articles

BetMGM to turn a profit next year
BetMGM to turn a profit next year By Reuters - Jan 19, 2022

(Reuters) - BetMGM is expected to turn a profit next year, while revenue in 2022 is likely to exceed a previous forecast as the U.S. sports-betting joint venture between MGM...

Futures gain as UnitedHealth, BofA rise on results
Futures gain as UnitedHealth, BofA rise on results By Reuters - Jan 19, 2022 2

By Shreyashi Sanyal (Reuters) - Upbeat results from UnitedHealth and Bank of America pushed U.S. stock index futures higher on Wednesday, partially righting a wobbly start to the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (18)
Matt Novakovich
Matt Novakovich Dec 02, 2021 10:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
covid loss of smell additive was created in a lab
Matt Novakovich
Matt Novakovich Dec 02, 2021 10:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
otherwise, common flu
Ac Tektrader
Ac Tektrader Dec 02, 2021 2:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I see the rabid antivaccer lessko is still parroting his misinformation, half truths, and lies that he gleans from the unvaccinated fanatics on social media. it's simple, get vaccinated and the likely hood of serious illness, injury, or Death to you, your family and friends, are at a minimum.
Matt Novakovich
Matt Novakovich Dec 02, 2021 2:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
get the jab and you'll clot
Robert Palumbo
Robert Palumbo Dec 02, 2021 2:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How much water they trying to get out of that Omicron pebble. What a joke of negative market news.
Ac Tektrader
Ac Tektrader Dec 02, 2021 2:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
another robert whistling past the grave yard...
Ac Tektrader
Ac Tektrader Dec 02, 2021 2:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
robert sharp sounds like a man whistling past the grave yard...there isn't enough data to determine what we are up against.
Matt Novakovich
Matt Novakovich Dec 02, 2021 2:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sheep
Darrell Peterson
Darrell Peterson Dec 02, 2021 1:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
there's that word jitters again, I guess you're suppose to be cautious, concerned, fearful, or whatever. I thought it was some kind of skin parasite.
Robert Sharp
Robert Sharp Dec 02, 2021 1:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Have yet to hear of even 1 patient with the omicron variant to be hospitalized.. even if there have been a few, if it were prevalent reuters would screem it from the roof tops to scare the bageezes out of everyone. I find it interesting that this article has no mention of severity of symptoms. To me that means things will quickly be back to business as usual. Powell on the other hand, we'll have to wait and see.
Joel Schwartz
Joel Schwartz Dec 02, 2021 1:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When the FED says “hey don’t worry about the markets” and then oil collapses 13.5% in a day, maybe you should worry about the markets. Big boys are selling every spike and you should too. Interest rates only have one direction to go from here.
Jamie An
Jamie An Dec 02, 2021 12:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When market rise we are in fear, when it drop we are in panic. We don't know why it goes or don't goes. We are sailing on foggy water.
Bobster Bambino
Bobster Bambino Dec 02, 2021 12:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There are many unknowns about omicron. For transmisability, will need to review south africa daily average cases over the next week. 3500 new cases wednesdag and expodential growth is certainly concering for an area recently hit with delta and presumed immunity from that. Omicron does not appear more virulent than delta but further data needed. Seems like vaccines protect but how effectively? Will likey be more of a scare than anything but the next few weeks will be telling.
George Pichurov
George Pichurov Dec 02, 2021 12:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
or...it could hit -150$ on the futures market
Chris Sundo
Chris Sundo Dec 02, 2021 12:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
For over 21 months now the population has PRACTICED 4 anti-Covid techniques, yet the incompetent governments around the world give the foot draggers credit as if they deserved it. -- Cleverly, the market plays along as if the foot draggers were so ubiquitous that humanity were endangered because people refuse to protect against Covid. Ha Ha Ha
Fong SH
Fong SH Dec 01, 2021 11:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Anyway, I am still in Hang Seng, buy at dips, it's going to be a good 2022 for Asia, East Asia, South East Asia. we will see.
Fong SH
Fong SH Dec 01, 2021 11:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There are a few factors that US is causing all these fears in financial markets, interest rates increase, Covid-19, Omicron, Delta etc.... In the past one year or so, China have been selling USD Bonds for awhile & thus the RMB is gaining ground. This is worrying for US as China started reducing her holdings in US debts. And some countries started doing direct currency swabs with China, by-passing the USD exchange rate on a fixed rate basis. There is also quite a handful of China Chinese buyers of properties in some western countries, causing uneasiness & unhappy foreign counterparts having China Chinese owning their properties. These are a few factors the western world is retaliating against China Chinese, well, you win some, you loose some, but  for the western world they just can't take loosing with openness. That's all. More new damages will come out with no end, until both US & China really sit down for a good mutual discussion again. It's going to take a long long time. lol
ron king
ron king Dec 01, 2021 10:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
please stop the fear and lies. you and the market makers work together to cause mass selloffs where your positioned to win
Rob Chan
Rob Chan Dec 01, 2021 10:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stop these lies. Markets are being manipulated by institutions and key players. The new variant symptoms are mild as confirmed by doctors.
Darshan Bansal
Darshan Bansal Dec 01, 2021 10:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
buy buy buy my friend
William Smith
William Smith Dec 01, 2021 10:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's all global warming fault.
andy boy
andyboy Dec 01, 2021 10:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The virus is not bad
Greg Hamilton
OptionsTrader Dec 01, 2021 10:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oh please..gtf over it. The variant is rare and mild, and we all knew the fed rate hike was coming.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email