U.S. equity futures gained, while Asian stocks were mixed in thin trading as investors mulled the impact of the omicron variant on the global recovery. Shares of China Evergrande Group were suspended in Hong Kong.
S&P 500 and Nasdaq 100 contracts advanced at the start of the new year, with major markets including Australia, Japan and China all shut for holidays. Equities rallied in South Korea and Taiwan, but fell in Hong Kong, where trading in Evergrande shares were halted with no reason given, and developer and technology sectors led declines.
There’s “a positive setup into 2022 with Fed and Covid headwinds to ease, and China policy tailwinds,” JPMorgan Chase & Co. strategists led by Mixo Das in Hong Kong, wrote in a report Sunday. “Overall, our economists see less disruption to economic activity and above trend global growth this quarter, particularly in Asia. In terms of Fed tightening, the moment of peak disruption for markets may also be passing.”
All eyes are on the omicron variant of Covid-19, which is spreading rapidly but also appears to be less severe than some earlier variants based on the rate of hospitalizations. The trajectory of policy by the Federal Reserve and other central banks in also in focus for 2022, particularly as inflation continues to present a challenge. Many strategists are predicting more volatility in the year ahead as the path forward becomes less clear.
Last year “was simply a period of ‘risk on,’” Jefferies strategists led by Sean Darby wrote in a note. “Peering into 2022, we expect volatility to rise, meaning that the return per unit of risk comes to the forefront.”
Oil edged higher as Libyan output fell before an OPEC+ meeting on Tuesday to discuss production policy.
Nikkei Closed Hang Seng -0.72% CSI Closed Shanghai Closed Shenzen Closed
Eur$ 1.1341 CNH 6.3617 CNY 6.3516 JPY 115.28 GBP 1.35 CHF 0.9146 RUB 75.1300 TRY 13.41 WTI$ 75.76 +0.73% Gold 1,825.30 -0.20% BTC 46,870 -0.30% ETC 3,797 -0.40%
S&P +0.35% Nasdaq +0.45% EuroStoxx -0.02% FTSE Closed Dax +0.12% SMI
Macro :
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- U.K. Develops Plans to Help Businesses From Covid Absences: FT
- Three Monster Years in S&P 500 Set a Towering Bar for January
- Goldman Backtracks on Office Return; U.S. Surge: Virus Update
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