After some hesitation, investors chose to welcome the good US economic figures rather than worrying about the surge in contamination by the Omicron variant.
The 7,000 points in Santa’s hood
Don’t miss the end of the year sprint! This was the watchword on the stock market this week. While volume remained tight and volatility continued, the drive to be “in the market” overrode all other considerations. European stock markets have been keeping an eye on Wall Street and they have seen nothing but green.
The latest economic indicators showed that growth was still there (+ 2.3% for the third quarter GDP, revised upwards), in particular thanks to consumers, whose confidence increased more than expected in December. Americans saved during the pandemic, which allows them to have fun for the holidays. Moreover, the fact that Joe Biden’s $ 1.750 billion plan is poorly started has not upset the market too much.
Chris Hussey, Managing Director of Goldman Sachs, summed it up very well on CNBC: “The triple headwind of increasing virus cases, a more offensive Fed and uncertain fiscal stimulus is well absorbed at current levels of equity valuations. “
On the pandemic front, of course, the acceleration of contaminations has created anxiety, but Joe Biden wanted to be reassuring. “200 million people are fully vaccinated, we are ready and we know more about the virus”, he said on Wednesday.
In Europe, traffic restrictions in several countries suggest that 2022 may be more difficult. But, in the meantime, stockholders have continued to bet on large Cac 40 companies, some of which have announced major operations or contracts (BNP Paribas, Engie, Airbus, etc.), and the scores for 2021 should be impressive. There is no question of jumping off the bandwagon!