The US stock indices continued to grow steadily for the second trading session in a row. By the close of the Stock Exchange, the Dow Jones Index (US30) gained 1.40%, the S&P 500 Index (US500) added 2.07%, and the NASDAQ Composite Index (US100) jumped by 3.03%. The growth of Nasdaq and S&P 500 indices has been the highest since early March. The optimism returned to the world markets due to a decrease in concerns about the influence of the new strain of coronavirus on the global economy. But there was also negative news. Studies have shown a 40-fold decrease in the neutralizing ability of Pfizer vaccines for the omicron strain. As a result, the Omicron COVID-19 strain is less serious, but the existing vaccines will not provide complete protection against it.
The US JOLTs Job Openings will be released today. Analysts expect that the number of vacancies is likely to fall again in October, which will increase investors’ expectations of a faster reduction of the QE program at the next Fed meeting.
The White House revealed the content of the talks between the US and Russian presidents Vladimir Putin and Joe Biden. The American leader, in particular, warned Putin of the “tough economic” measures that await Russia in the event of an attack on Ukraine. It’s not only about stopping Nord Stream-2, but also the complete isolation of Russia from the global financial system, with all the ensuing consequences for business and the population. The presidents also discussed cybersecurity issues and joint work on problems in regions of the world, including Iran.
European stock indexes also finished Tuesday’s trading with a steady rise. Germany’s DAX (DE30) gained 2.8%, France’s CAC 40 (FR 40) added 2.9%, Spain’s IBEX 35 (ES35) increased by 1.4%, and the British FTSE 100 (UK 100) increased by 1.5% to its highest level in three weeks. Electricity prices are once again hitting new records in Europe. The estimated Eurozone GDP growth in the third quarter was left at 2.2%, as expected. But the forecast of the Eurozone GDP growth in annual terms was revised upward to 3.9% from 3.7%.
British pharmaceutical company GlaxoSmithKline announced the effectiveness of its COVID-19 drug, which is based on antibodies against a new strain of Omicron. The company reported that final test results showed 100% efficacy against Omicron.
Spain’s Ministry of Health has approved vaccination against COVID-19 for children 5 and 11.
Flight bookings between the US and Europe decreased by 55% from the previous week. Bookings within Europe fell by 47%. Analysts believe the spread of the Omicron strain will increase the probability of lower oil demand in the short term. Oil prices increased by 4% yesterday.
Asia-Pacific stock indices were mostly positive, following solid gains in the US and European markets. Japan’s Nikkei 225 Index (JP225) increased by 1.42% today, despite Japan’s third-quarter GDP declining 0.9%. Australia’s ASX 200 (AU200) added 1.25%, but Hong Kong’s Hang Seng (HK50) decreased by 0.13% amid Evergrande risks. S&P strategists are confident that the default of Evergrande is inevitable; it is only a matter of time.
Main market quotes:
- S&P 500 (F) (US500) 4,686.75 +95.08 (+2.07%)
- Dow Jones (US30) 35,719.43 +492.40 (+1.40%)
- DAX (DE40) 15,813.94 +433.15 (+2.82%)
- FTSE 100 (UK100) 7,339.90 +107.62 (+1.49%)
- USD Index 96.32 +0.04 (+0.04%)
Important events for today:
- Japan GDP (q/q) at 01:50 (GMT+2);
- ECB President Lagarde’s Speech at 10:15 (GMT+2);
- US JOLTs Job Openings (m/m) at 17:00 (GMT+2);
- Canada BoC Interest Rate Decision (m/m) at 17:00 (GMT+2);
- Canada BoC Rate Statement (m/m) at 17:00 (GMT+2);
- US Crude Oil Reserves (w/w) at 17:30 (GMT+2).