Global stock markets rose on Tuesday, signs that the Omicron coronavirus variant may not be as serious as people feared, and signals that the Chinese authorities expressed their willingness to stimulate the country’s slowing economy, encouraging investors.
The FTSE Global Equity Index rose 2.2%, its best day since November 2020, and the S&P 500 rose 2.1%, putting the US benchmark index up 0.5% from the record closing price set before the new variant for the first time last month Report.
The whole line rose, and more than 450 index stocks were green. The Nasdaq Composite Index, which is dominated by technology stocks, rose 3.2%, which is expected to set its biggest one-day gain since March, while the Russell 2000 Index, which focuses on small-cap stocks, rose 3%.
in stock There is a wash in the marketd The past two weeks have been driven by concerns about Omicron and expectations that the U.S. central bank may tighten monetary policy faster than previously expected.
Scientists are still studying Severity of Omicron And its potential to evade vaccines, but some Early data Researchers from South Africa said that compared with previous waves of infections, this strain may cause less serious diseases.
Fahad Kamal, chief investment officer of Kleinwort Hambros, said: “What can you say, it’s a wonderful day and everything is fine.” He added that the suggestion that Omicron might cause less serious illness means “a lot of sitting Bian’s cash took advantage of this decline—just as it did throughout the year.”
Legal & General Investment Management’s head of asset allocation, Emile Vanden Heiligenberg, warned that further measures may still be necessary to restrict access, but said the impact of the previous blockade on stock market returns was “relatively short-term”.
“We bet stock investors will study it carefully,” he said.
After a strong day in Europe and Asia, the US market rose. The Stoxx Europe 600 index closed up 2.4%, while technology stocks and cyclical businesses rose. The London FTSE 100 Index rose 1.5%.
At the same time, Asian investors were also Central bank It will release the liquidity of the banking system by reducing the share of reserve deposits that financial institutions must hold. The highest decision-making body of the government also promised to maintain a proactive fiscal policy and a “flexible” monetary policy.
“Whether it is consistent with words and deeds, Chinese policymakers are increasingly willing to relax policies in response to the sharp slowdown in growth,” Longzhou Economics China analyst He Wei wrote in a report.
Hong Kong’s Hang Seng Index rose 2.7%, while Tokyo’s Topix Index closed up 2.2%.
Rising oil prices and falling government bond prices also reflect increased optimism.
The global oil benchmark Brent crude oil rose 3.7% to US$75.79 per barrel.
In the government bond market, the 10-year U.S. Treasury bond yield rose by 0.03 percentage points to 1.47%. The higher yield reflects the decline in prices.
Additional reporting by George Steer in London
Unhedged-markets, finances and strong opinions
Robert Armstrong analyzed the most important market trends and discussed how the best people on Wall Street respond to these trends.register here Send the newsletter directly to your inbox every business day