(Bloomberg) — U.S. equity futures advanced and European stocks headed for a record on the first trading day of 2022. U.S. Treasuries fell.
Tesla Inc. shares surged 7% in pre-market trading as the carmaker navigated supply-chain disruptions to report blowout deliveries for the fourth quarter. Ford Motor Co., Apple Inc. and Boeing Co. posted modest gains.
Volumes were light with markets including the U.K., Japan and China closed for holidays. Futures on the S&P 500 added 0.5% and Europe’s Stoxx 600 rose 0.6%. In Hong Kong, property shares dropped and China Evergrande Group halted trading.
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“Though omicron’s impact remains uncertain, concerns about its potential impact on the economic recovery have eased, focusing attention on the Fed rate hike process and anticipation of lower inflation,” wrote Dennis DeBusschere, founder of 22V Research, an independent research shop.
Automakers led gains in Europe on the back of Tesla’s news. The company posted results on Sunday showing that it delivered 308,600 vehicles worldwide in the fourth quarter. Analysts said the results underscore robust consumer demand for electric cars and will buoy sentiment in the industry.
Elsewhere, oil futures in New York traded near $75 a barrel. Libya’s crude output is expected to fall to the lowest in more than a year as workers try and fix a damaged pipeline. Additionally OPEC reduced its estimate of the global oil surplus. The group is meeting on Tuesday to discuss another output boost.
What to watch this week:
- FOMC meeting minutes scheduled for release Wednesday
- Fed’s Bullard discusses the U.S. economy and monetary policy in an event on Thursday
- Fed’s Daly discusses monetary policy on a panel Friday
- ECB’s Schnabel speaks on a panel Saturday
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 rose 0.5% as of 8:49 a.m. New York time
- Futures on the Nasdaq 100 rose 0.6%
- Futures on the Dow Jones Industrial Average rose 0.4%
- The Stoxx Europe 600 rose 0.6%
- The MSCI World index was little changed
Currencies
- The Bloomberg Dollar Spot Index rose 0.2%
- The euro fell 0.2% to $1.1350
- The British pound fell 0.3% to $1.3489
- The Japanese yen was little changed at 115.11 per dollar
Bonds
- The yield on 10-year Treasuries advanced six basis points to 1.57%
- Germany’s 10-year yield advanced three basis points to -0.15%
Commodities
- West Texas Intermediate crude fell 0.7% to $74.71 a barrel
- Gold futures fell 1.2% to $1,807.30 an ounce
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