BUSINESS Global stock markets rise after Wall St rebounds

BUSINESS

Global stock markets rise after Wall St rebounds

AP

20:08, December 22, 2021

A currency trader watches monitors in front of screens showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Dec. 22, 2021. (Photo: AP)

Global stock markets rose Wednesday after President Joe Biden reassured investors by calling for vaccinations and testing but no travel curbs in response to the omicron coronavirus variant.

Shanghai, Frankfurt, Tokyo and Hong Kong advanced. London opened lower.

Wall Street rose after Biden announced Tuesday the government will provide rapid-test kits and increase vaccination efforts but gave no indication of plans for restrictions that might disrupt the economy. Other governments in Asia and Europe have tightened travel controls or pushed back plans to relax curbs already in place.

Biden “provided some much-needed reassurances for markets,” Yeap Jun Rong of IG said in a report.

In early trading, the FTSE 100 in London was off 0.2% at 7,286.79 while Frankfurt's DAX added 1.4% to 15,447.44. The CAC 40 in Paris rose 1.4% to 6,964.99.

On Wall Street, the future for the benchmark S&P 500 index was off less than 0.1%. That for the Dow Jones Industrial Average was up less than 0.1%.

On Tuesday, the S&P 500 rose 1.8%, putting it within 1.4% of its Dec. 10 all-time high. The Dow gained 1.6% and the Nasdaq composite gained 2.4%.

In Asia, the Shanghai Composite Index closed up less than 0.1% at 3,628.31 and the Nikkei 225 in Tokyo added 0.1% to 28,548.80. The Hang Seng in Hong Kong rose 1% to 23,204.27.

The Kospi in Seoul added 0.2% to 2,980.69 while Sydney's S&P-ASX 200 lost 0.1% to 7,345.30.

India's Sensex advanced 0.9% to 56,319.01. New Zealand declined while Southeast Asian markets advanced.

Traders were rattled by official statements that omicron was spreading faster than expected after airline, cruise line, oil and other travel-related stocks had risen earlier on expectations tighter controls could be avoided.

Sentiments also have been dampened by expectations for tighter U.S. monetary policy after the Federal Reserve indicated last week it will accelerate plans to wind down economic stimulus that has been boosting stock prices. The Fed changed course after inflation rose to a four-decade high of 6.8% in November.

Traders also are worried about the impact of global supply chain disruptions that are fueling fears of higher inflation.

In energy markets, benchmark U.S. crude climbed 50 cents to $71.62 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.89 on Tuesday to $71.12. Brent crude, the price basis for international oils, advanced 48 cents to $74.46 per barrel in London. It gained $2.46 the previous session to $73.98.

The dollar slipped to 114.06 yen from Tuesday's 114.12 yen. The euro fell to $1.1275 from $1.1282.

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue