U.S. equity futures rose, while Asian stocks were mixed in thin trading as investors thought about the impact of the omicron variant on the global recovery and how to deal with it. Shares of China Evergrande Group were suspended in Hong Kong because they were in bad shape.
Major markets in Asia were closed at the start of the new year, so the S&P 500 and the Nasdaq 100 contracts rose. It was a bad day for the stock market in Hong Kong. Developers and tech companies were to blame. South Korea and Taiwan’s stocks lost some of their gains. Futures for the Euro Stoxx 50 index were not very different from the last time they were sold.
There were a lot of people taking risks last year. Jefferies strategists led by Sean Darby wrote that last year was “a simple period of risk on.” With a look ahead, we expect volatility to rise, which means that the return per unit of risk comes to the fore.
Omicron Covid-19, which is spreading quickly but also appears to be less dangerous than some earlier Covid-19 variants based on the number of people who need to be hospitalised. The Federal Reserve and other central banks are also being looked at by investors because inflation is still a problem.
In a report on Sunday, JPMorgan Chase and Co. strategists said that there is a “positive setup” into 2022, with the Fed and Covid “headwinds” to ease, as well as positive China policy moves. There will be less disruption to the economy this quarter, and global growth will be above trend, especially in Asia. In terms of the Fed’s tightening, “the peak disruption for markets may also be over.”
Asia’s factory activity kept growing in December, thanks to strong demand and less congestion in the supply chain, according to a slew of data released Monday.
While no specific explanation for the trading stop was announced, Chinese developer Evergrande’s stock plummeted following local media reports that the business had been ordered to demolish apartment complexes at a project in Hainan province.
The price of oil rose little as Libyan output fell ahead of an OPEC+ meeting on Tuesday to debate production policies.
This week’s shows to watch:
- The minutes of the FOMC meeting will be released on Wednesday.
- Bullard of the Federal Reserve speaks about the US economy and monetary policy at an event on Thursday.
- On a panel discussion on Friday, Fed’s Daly addresses monetary policy.
- Schnabel of the European Central Bank speaks on a panel on Saturday.
The following are some of the most significant market movements:
Stocks
- As of 7:05 a.m. in London, S&P 500 futures were up 0.4 percent.
- Futures for the Nasdaq 100 rose 0.5 percent.
- The Kospi index in South Korea increased by 0.4 percent.
- Taiex, Taiwan’s stock exchange, increased by 0.3 percent.
- The Hang Seng Index dropped by 0.6 percent.
- Futures on the Euro Stoxx 50 were hardly changed.
Currencies
- The yen fell 0.2 percent to 115.33 yen.
- The Bloomberg Dollar Spot Index increased by 0.2%.
- The euro dropped 0.2% to 1.1344.
Bonds
- On Monday, cash Treasuries throughout Asia and the United Kingdom are closed.
- Last week, the yield on 10-year Treasuries was 1.51 percent.
- On Friday, Australia’s 10-year yields increased four basis points to 1.67 percent.
Commodities
- The price of West Texas Intermediate crude increased by 0.8 percent to $75.81 a barrel.
- The price of gold declined 0.2 percent to $1,825.54 per ounce.
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