London, Dec 29 (AFP\/APP):Stock markets wobbled Wednesday as a “Santa Claus rally” showed signs of fatigue, with investors gauging the impact of the Omicron coronavirus variant on the economic recovery.<\/p>\n
London’s FTSE 100 outshone other markets, rising 0.7 percent to hit a nearly two-year high as UK traders returned from a long holiday.
\nBut the traditional post-Christmas bullish mood waned in Asia and the eurozone, with markets there finishing lower.<\/p>\n
The picture was mixed in midday trading on Wall Street, with the Dow Jones Industrial Average up while the S&P 500 was flat and the tech-heavy Nasdaq fell.
\n“The markets continue to reassess the economic impact of the Omicron variant,” analysts at Schwab said in a note.<\/p>\n
The United States has hit its highest-ever average of new Covid cases as Omicron spreads at a blistering pace, and the World Health Organization warned that a “tsunami” of infections would push health systems to the brink of collapse.<\/p>\n
But investors have also clung to data showing a reduced risk of hospitalisation.<\/p>\n
“With market activity much reduced for the holiday season, investors continue to tentatively price in a global recovery hitting a minor bump, and not a pothole,” said Jeffrey Halley, senior market analyst at OANDA trading group.<\/p>\n
– ‘Recycled narrative’ –<\/p>\n
Trading volumes remain thin going into the new year, when prospects for global growth and the long-term impact of the Omicron variant are expected to become clearer.<\/p>\n
Moody’s economist Mark Zandi said in a note the Omicron wave would dent growth in the first quarter, but “not have a material impact” on 2022 overall because of a rebound later in the year.<\/p>\n
“Even after the Omicron wave abates, there will almost surely be others. But we expect each new wave to be less disruptive to the healthcare system and economy than the wave before it,” he said.
\nBriefing.com market analyst Patrick O’Hare said US investors may be more influenced by rising bond yields this week.<\/p>\n
“The Omicron variant, of course, continues to dominate press reports, yet those same reports continue to be painted with assertions that the Omicron variant produces mostly mild symptoms,” O’Hare said.
\n“In other words, this is a recycled narrative, so its impact as a market driver is fading,” he said.<\/p>\n
– Key figures around 1700 GMT –<\/p>\n
New York – S&P 500: UP 0.1 percent at 36,461.51 points
\nLondon – FTSE 100: UP 0.7 percent at 7,420.69 (close)
\nFrankfurt – DAX: DOWN 0.7 percent at 15,852.25 (close)
\nParis – CAC 40: DOWN 0.3 percent at 7,161.52 (close)
\nEURO STOXX 50: DOWN 0.6 percent at 4,284.83 (close)
\nTokyo – Nikkei 225: DOWN 0.6 percent at 28,906.88 (close)
\nHong Kong – Hang Seng Index: DOWN 0.8 percent at 23,086.54 (close)
\nShanghai – Composite: DOWN 0.9 percent at 3,597.00 (close)
\nEuro\/dollar: UP at $1.1340 from $1.1299
\nPound\/dollar: UP at $1.3472 from $1.3420
\nEuro\/pound: DOWN at 84.17 pence from 84.20 pence
\nDollar\/yen: UP at 114.94 yen from 114.90 yen
\nBrent North Sea crude: DOWN 0.5 percent at $78.58 per barrel
\nWest Texas Intermediate: DOWN 0.1 percent at $75.89 per barrel<\/p>\n
MOODY’S CORP.
\nNORTHERN TRUST<\/p>\n","protected":false},"excerpt":{"rendered":"
London, Dec 29 (AFP\/APP):Stock markets wobbled Wednesday as a “Santa Claus rally” showed signs of fatigue, with investors gauging the impact of the Omicron coronavirus variant on the economic recovery. London’s FTSE 100 outshone other markets, rising 0.7 percent to hit a nearly two-year high […]<\/p>\n
\n","protected":false},"author":2,"featured_media":31910,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[15306],"class_list":["post-31904","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-business-news","tag-stock-markets-waver-as-investors-ponder-omicron-impact"],"yoast_head":"\n