Markets rallied on Tuesday after several sessions of decline, with the spread of Omicron and government responses in the run-up to the holiday season prompting less pessimistic investors.
After three sessions of clear decline, Wall Street has progressed resolutely. The Dow Jones gained 1.60%, the technology-heavy Nasdaq index gained 2.40%, and the broader S&P 500 index, 1.78%.
At the same time in Europe, the indices benefited from cheap purchases after two sessions of decline: Paris and London regained 1.38%, Frankfurt 1.36%, and Milan 1.82%.
On the bond market, yields rose again, as they had on the previous day, a sign of a return of appetite for other riskier assets. The yield on US 10-year government bonds stood at 1.46% from 1.42% on Monday.
The Omicron variant “continues to cause headaches for investors on both sides of the Atlantic,” said Timo Emden, independent analyst, however. “Although recovery trends can be seen in the short term, the situation remains fragile.”
Investors could be reassured by the absence of new restrictive measures in the United Kingdom or the United States even if the respite could only be short-lived due to the speed of the spread of the virus.
“There is hope that Omicron is not as serious as the market anticipated,” said Rob Haworth, head of investment strategy at US Bank Wealth Management.
On the political level, in the United States, President Joe Biden is still trying to save his gigantic plan of social reforms. He took a heavy blow after Democratic Senator Joe Manchin announced on Sunday that he would not approve the crucial program, but talks continued on Tuesday.
The price of gas is soaring in Europe
The price of gas in Europe broke a new record Tuesday on the first day of winter, boosted by seasonal demand and geopolitical tensions between the main supplier, Russia and its client countries. The benchmark European price, the Dutch TTF, rose around 3:00 p.m. GMT by nearly 25% to 184.95 euros per megawatt hour.
In Germany, energy companies EON (+ 1.86% to 12.05 euros) and RWE (+ 1.85% to 35.30 euros) as well as the wind turbine manufacturer Nordex (+ 4.07% to 14.07 euros) saw their prices rise, the price of electricity being able to be influenced by those of gas. In France, EDF also took 3.66% to 10.22 euros.
Nike fit
Nike’s results were greeted by investors (+ 6.15% to 166.63 dollars), who retained the high level of margin more than the weak growth in turnover (+ 1%), mainly due to the persistence of supply disruptions.
The group, whose figures were drawn by North America, confirmed its objective of 5% increase in turnover over its postponed fiscal year 2022 (from June to May).
In the wake of the results, sportswear chain JD Sports gained 4.02% to 207.20 pence in London.
Air values relieved
“The gains of airlines and cruise lines show some optimism that another ban on international travel should be avoided,” also noted Joshua Mahony, analyst at IG.
In London, Carnival took 9.59% to 1,392.00 pence, IAG 6.90% to 139.98 pence and TUI 6.63% to 228.40 pence. In Germany, Lufthansa (+ 6.58% to 6.23 euros) and MTU Aero Engine (+ 4.20% to 172.45 euros), also climbed.
In New York, United Airlines jumped 6.89% to 43.93 dollars and Boeing 5.86% to 199.52 dollars.
Oil is rising
Oil prices ended sharply higher on Tuesday, rebounding after several sessions of decline, in part thanks to the feeling that the impact of the Omicron variant of the coronavirus on the economy may not be as heavy as initially anticipated. .
A barrel of North Sea Brent for February delivery, the most traded in London, ended up 3.43% to $ 73.98.
In New York, a barrel of West Texas Intermediate (WTI) due in February also, which was the first day of use as a benchmark contract, gained 4.53% to 71.12 dollars.
On the currency side
The euro was stable (+ 0.01%) against the dollar at 1.1281 dollars.
Bitcoin gained 3.88% to $ 49,037.
© 2021 AFP
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