(Bloomberg) — Stocks rose with U.S. futures as investor optimism grew that the global recovery can weather the omicron flareup.
Travel and leisure shares led gains in European amid thin trading ahead of Christmas. U.S. contracts climbed, with the S&P 500 Index within reach of a record high. Gains in Japan boosted Asian stocks.
Investors are wagering the latest Covid-19 variant won’t derail global growth, even as officials remain cautious about its spread. A trio of studies signaled omicron may be less likely to land patients in hospital than delta, while antiviral treatments and booster jabs are ramping up. That’s helping markets that have been whipsawed by virus worries, tighter policy and a foggy outlook for U.S. fiscal stimulus.
The dollar was steady, while Treasury yields ticked up. The pound rose as traders stepped up bets on a Bank of England rate hike.
“Markets hate uncertainty and not knowing, and when omicron hit the markets, we didn’t know,” Carol Schleif, BMO Family Office deputy chief investment officer, said on Bloomberg Television. “But it seems like it’s edging toward something more positive.”
A gauge of global stocks is up more than 2% so far this month, leaving the index 15% higher for the year and on course to surpass 2020’s gain.
Adding to the positive newsflow on omicron, lab results indicated a third dose of AstraZeneca Plc’s vaccine significantly boosted antibodies against the strain, and Pfizer Inc.’s Covid-19 pill gained clearance for emergency use in the U.S.
“Our outlook for the global economy remains positive, but we have preference on developed markets,” Janet Mui, director of investment at Brewin Dolphin Limited, said in an interview with Bloomberg TV. “The economic recovery will continue in the major economies like the U.S., U.K. and the Euro area, thanks to the very high vaccination rates and ongoing rollout of the booster jabs.”
Elsewhere, crude rose as traders weighed falling U.S. stockpiles against the threat to demand from the omicron virus variant. Bitcoin slipped toward $48,000.
European natural gas prices plunged more than 20% as this year’s rally attracted a flotilla of U.S. cargoes, helping offset lower flows from Russia.
What to watch this week:
- University of Michigan consumer sentiment, new home sales on Thursday
- Friday: U.S. markets are closed. U.K. markets close earlier
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 rose 0.2% as of 8:39 a.m. New York time
- Futures on the Nasdaq 100 rose 0.1%
- Futures on the Dow Jones Industrial Average rose 0.2%
- The Stoxx Europe 600 rose 0.5%
- The MSCI World index rose 0.2%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro fell 0.1% to $1.1312
- The British pound rose 0.5% to $1.3420
- The Japanese yen fell 0.2% to 114.34 per dollar
Bonds
- The yield on 10-year Treasuries advanced one basis point to 1.46%
- Germany’s 10-year yield advanced three basis points to -0.26%
- Britain’s 10-year yield advanced four basis points to 0.92%
Commodities
- West Texas Intermediate crude rose 0.4% to $73.04 a barrel
- Gold futures rose 0.4% to $1,809 an ounce
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