Global stocks follow Wall Street higher as virus fears subside
BEIJING – Global stock markets followed Wall Street higher on Tuesday as anxiety over the latest variant of the coronavirus eased and China announced higher-than-expected November trade figures.
London and Frankfurt opened up. Shanghai, Tokyo and Hong Kong have advanced. Oil prices rose more than $ 1 a barrel for a second day.
Wall Street futures were higher after the White House’s chief medical adviser on Monday said the omicron variant may be less dangerous. This could help ease travel and business restrictions.
Reports from South Africa, where omicron was first spotted, that hospitals were not overwhelmed “fuel some optimism” among traders who sold earlier, Yeap Jun Rong said IG in a report.
In early trading, the London FTSE 100 was up 1% to 7,302.61 and the Frankfurt DAX was up 1.6% to 15,623.97. The CAC 40 in Paris gained 1.7% to 6,982.63.
On Wall Street, the S&P 500 future was up 1% and that of the Dow Jones Industrial Average rose 0.8%.
On Monday, the S&P 500 rose 1.2% while the Dow Jones rose 1.9%. The Nasdaq composite gained less than 0.1%.
In Asia, the Shanghai Composite Index rose 0.2% to 3,595.09 after November’s imports jumped 31.7% year-on-year, a sign that domestic demand may strengthen.
The Nikkei 225 in Tokyo gained 1.9% to 28,455.60 and the Hang Seng in Hong Kong gained 2.6% to 23,983.66.
Seoul’s Kospi advanced 0.6% to 2,991.72 and Sydney’s S & P-ASX 200 gained 1% to 7,313.90.
India’s Sensex index rose 2% to 57,871.21. The New Zealand and Southeast Asian markets advanced.
On Wall Street, more than 85% of S&P 500 stocks rose on Monday, led by technology and banks.
Airlines, cruise lines and other travel agencies that stand to gain from avoiding more coronavirus checks have come forward after Dr Anthony Fauci said early indications suggested omicron may be less dangerous than the previous delta variant.
It will take a few more weeks to find out if omicron is more contagious, causes more serious illness, or eludes immunity.
Investors are also taking into account the mixed US employment data and the Federal Reserve’s plan to accelerate the withdrawal of its stimulus measures to calm inflationary pressures.
The US government is due to report November consumer inflation on Friday.
In energy markets, benchmark US crude rose $ 1.58 to $ 71.07 per barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $ 3.23 on Monday to $ 69.49. Brent crude, the basis of international oil prices, added $ 1.41 to $ 74.49 per barrel in London. It jumped $ 3.20 the previous session to $ 73.08 a barrel.
The dollar rose to 113.70 yen from 113.49 yen on Monday. The euro fell to $ 1.1266 from $ 1.1278.
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