Investors cling to hope as Omicron spreads, stocks rebound – .

Investors cling to hope as Omicron spreads, stocks rebound – .

  • U.S. stock indices close higher
  • European equities close higher
  • Gold eases, crude futures firm
  • 10-year US Treasury yields rise
  • Chart: Overall asset performance

NEW YORK / LONDON, Nov. 29 (Reuters) – A semblance of calm returned to global markets on Monday as investors waited for more details to assess the severity of the Omicron coronavirus variant on the global economy, allowing stocks and for oil prices to rebound.

Global stocks rallied, oil prices rebounded and safe haven bonds lost ground as markets clung to hopes that the new variant would prove to be more subdued than initially feared. Read more

The Dow Jones Industrial Average (.DJI) rose 236.6 points, or 0.68%, to 35,135.94; the S&P 500 (.SPX) gained 60.61 points, or 1.32%, to 4,655.23; and the Nasdaq Composite (.IXIC) added 291.18 points, or 1.88%, to 15,782.83.

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The pan-European STOXX 600 (.STOXX) finished 0.7% higher, recording its best day in a month and recovering some of Friday’s 3.7% drop triggered by concerns about the newly discovered variant.

MSCI’s stock gauge across the world (.MIWD00000PUS) gained 0.67%.

News of the variant sparked alarm and a sell-off on Friday that wiped an estimated $ 2 trillion from the value of global stocks as countries imposed new restrictions lest the variant withstand vaccinations and upset a reopening. emerging economy after a two-year global pandemic.

The Omicron, detected in South Africa last week, has been found as far as Canada and Australia. The World Health Organization said on Monday that the heavily mutated variant poses a very high risk of outbreaks of infection. Read more

Still, investors were reassured by signs that its impact may not be as severe as feared. In South Africa, a leading infectious disease expert said existing COVID-19 vaccines are likely effective in preventing serious illness and hospitalization. Read more

“For now, the market is reacting positively to statements that this variant will not be a major problem, but there is still a lot of concern,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

A South African doctor who was one of the first to suspect a new strain said on Sunday that patients so far appeared to have mild symptoms. Read more

“It has been reported that the new strain of the virus is ‘unusual but benign’ and this appears to be the driving force behind the rally in stocks today,” said David Madden, market analyst at Equiti Capital.


The largest MSCI Asia-Pacific stock index outside of Japan (.MIAPJ0000PUS) fell 0.4%, but found support ahead of its 2021 low. Japan’s leading Nikkei (.N225) has fell 1.6% as the country decided to ban foreigners from avoiding the Omicron strain.

Oil prices have rebounded, after plunging more than 10% on Friday in their steepest one-day decline since April 2020.

US crude futures were $ 69.95 per barrel, up 2.6%. Brent futures were at $ 73.44 per barrel, up 1%.

Speculation that oil-producing group OPEC and its allies, known as OPEC +, could halt an increase in production in response to the Omicron spread has contributed to the rebound in oil prices. Read more

Brent rebond


Policymakers at the European Central Bank have sought to reassure investors shaken by the new variant, saying the eurozone economy has learned to cope with successive waves of the pandemic. Read more

This encouraged an exit from safe-haven bond markets, which rallied on Friday, as investors took into account the risk of a slower start to US Federal Reserve rate hikes and less tightening by some other central banks. . Read more

The benchmark 10-year notes last fell 9/32 to a return of 1.5141%, down from 1.485% on Friday night.

European sovereign bond yields rose, with the latest inflation figures highlighting the challenges ahead for the ECB.

German inflation is expected to rise above 5% in November for the first time in nearly three decades, regional data from several states suggested Monday. Read more

Gold prices eased, resuming a large decline from the previous week, as the dollar strengthened and risk sentiment recovered.

US gold futures were down 0.2% to $ 1,782.30.

The dollar index rose 0.07%, with the euro down 0.32% to $ 1.1281.

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Additional reporting by Wayne Cole in Sydney; Graphics by Danilo Masoni and Sujata Rao; Editing by Angus MacSwan and Richard Chang

Our Standards: Thomson Reuters Trust Principles.


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