Wall Street rose Tuesday after Biden announced that the government would provide rapid-test kits for vaccines and boost vaccination efforts. However, he did not mention any plans to restrict the economy. Other European and Asian governments have tightened travel restrictions or reversed plans to loosen existing ones.
Yeap Jun Rong, IG reported that Biden provided “some much-needed reassurances to markets”.
Early trading saw the FTSE 100 in London fall 0.2% to 7,286.79, while Frankfurt’s DAX rose 1.4% to 15,447.44. The CAC 40 rose 1.4% to 6,964.99.
Wall Street was less optimistic than expected for the benchmark S&P 500 Index. The Dow Jones Industrial Average saw a decrease of 0.1%.
The S&P 500 rose 1.8% on Tuesday, just 1.4% from its Dec. 10 record high. The Dow gained 1.6%, while the Nasdaq composite gained2.4%
The US population growth rate was the lowest in the first year of pandemics
The Shanghai Composite Index closed down 0.1% at 3,628.31 in Asia. Tokyo’s Nikkei225 added 0.1% to 28,548.80. The Hang Seng in Hong Kong rose by 1% to 23,204.27.
The Kospi in Seoul increased 0.2% to 2,980.69, while Sydney’s S&P ASX 200 lost 0.1% at 7,345.30.
India’s Sensex rose 0.9% to 56.319.01. New Zealand’s economy declined, while Southeast Asian markets grew.
Official statements that omicron was spreading faster then expected by airline, cruise line and oil stocks, rattled traders. This was despite expectations of tighter control.
Expectations for tighter U.S. Monetary Policy have dampened sentiments after the Federal Reserve indicated last Wednesday that it will accelerate plans in order to reduce economic stimulus which has been driving stock prices up. After inflation reached a record 6.8% in November, the Fed reversed its course. This was a four-decade high.
Traders are also concerned about the global supply chain disruptions, which are fueling inflation fears.
Energy markets saw benchmark crude oil rise 50 cents to $71.62 per barrel in electronic trading on New York Mercantile Exchange. On Tuesday, the contract increased $2.89 to $71.12. Brent crude oil, which is the price basis for international oil, rose 48 cents to $74.46 per barrel in London. It rose $2.46 to $73.98 from the previous session.
From Tuesday’s 114.12yen, the dollar fell to 114.06yen. The euro dropped to $1.1275, from $1.1282.
