(Bloomberg) — U.S. equity-index futures were steady on Wednesday as investors assessed the economic implications of the omicron coronavirus outbreak. Treasury yields rose.
Contracts on the S&P 500 and Nasdaq 100 were little changed after the rally in U.S. stocks stalled on Tuesday. Tesla Inc. gained more than 1% in pre-market trading after Chief Executive Elon Musk sold a further $1.02 billion off shares, taking him close to his target of reducing his stake in the electric-car maker by 10%.
The Stoxx Europe 600 index came to within a whisker of another record before reversing the advance. Technology shares declined, following the sector’s retreat in the U.S. and Asia, while energy stocks underperformed as European gas prices slumped for a sixth day. Most European bonds declined.
Investors are rounding out the year by booking some profits after a 17% jump in global equities. The coronavirus, Federal Reserve policy tightening and China’s outlook are among the key risks for 2022. Omicron fears are easing on growing evidence that the fast-spreading strain leads to milder symptoms, even as worldwide Covid-19 cases rose above 1 million for a second straight day.
“Although omicron cases in the U.S. and Europe amongst others, continue to surge, it has yet to make its presence felt negatively in economic data,” Jeffrey Halley, a senior market analyst at Oanda, said in a note. “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.”
The dollar was steady against major peers. Crude oil slipped, and iron ore futures in Singapore and China declined for a third day. Bitcoin stayed below $48,000 after a tumble that hinted at diminished ardor for the most speculative assets.
Shares slipped in Japan, technology stocks drove a retreat in Hong Kong and China slid. Sentiment in China is being sapped by Beijing’s tightening oversight of overseas share sales and economic risks from a property slowdown. Authorities are expected to add stimulus next year to steady expansion.
Read: China’s Stable Economy Clouded by Property and Export Outlook
In the latest U.S. data, the Richmond Fed’s manufacturing survey rose in December, beating estimates. Growth in U.S. home prices cooled modestly in October after soaring during the pandemic.
“We’re sober about potential headwinds that still could be coming, even the rest of this year, but early in 2022 — the Fed is going to be raising rates, that will change things for the markets,” Ann Miletti, head of active equity at Allspring Global Investments, said on Bloomberg Television. “We are also hopeful because as you look at a lot of the economic data, it remains strong.”
Elsewhere, Elon Musk continued to offload Tesla Inc. stock, selling just over $1 billion of shares.
What to watch this week:
- U.S. initial jobless claims, Thursday
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 were little changed as of 8:46 a.m. New York time
- Futures on the Nasdaq 100 were little changed
- Futures on the Dow Jones Industrial Average were little changed
- The Stoxx Europe 600 fell 0.1%
- The MSCI World index was little changed
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1316
- The British pound rose 0.2% to $1.3455
- The Japanese yen was little changed at 114.93 per dollar
Bonds
- The yield on 10-year Treasuries advanced three basis points to 1.52%
- Germany’s 10-year yield advanced three basis points to -0.21%
- Britain’s 10-year yield advanced six basis points to 0.98%
Commodities
- West Texas Intermediate crude fell 0.4% to $75.68 a barrel
- Gold futures fell 1% to $1,792.70 an ounce
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