Traders appear to have marked new parts taken by governments to slow the advance of the Omicron coronavirus strain. The Stoxx 600 index rose 0.2 percent in early trading; After a high close of 1.4 percent on Tuesday. Stock indices in Frankfurt, London, and Paris changed slightly. In Asia, Hang Seng trade increased by 0.5 percent. The Nikkei 225 rose 0.2 percent. Stock markets have been moving back and forth in recent days because investors are responding to both the emerging monetary policy environment and the rapid spread of Omicron.
Despite a drop in the country’s infection rate, Germany’s new chancellor announced on Tuesday that private gatherings among those vaccinated will be limited to 10 people from December 28. There will be even stricter rules for the unvaccinated. The measures were tightened by Portugal as well. Sweden encourages residents to work from home while restaurants and bars work out of service.
Boris Johnson, the Prime Minister of the United Kingdom, has ruled out imposing new restrictions before Christmas; However, the following measures should be tightened. On Wednesday, the Office for National Statistics revised the U.K.’s economic growth estimate to 1.1 percent in the third quarter of the year, before a new option appeared.
US Stocks and Omicron Effect
In the United States, the technologically heavy futures of the Wall Street blue-chip Nasdaq 100 and S&P 500 were suspended on Wednesday. Since the previous session, the indices have risen by 2.3 and 1.8 percent, respectively.
Travel and leisure companies also recorded profits this week. Carnival, Expedia, and Live Nation gained 8.6 percent, 9.1 percent, and 6.8 percent. Accordingly. Las Vegas Sands and Caesars Entertainment also recorded high single-digit profits.
Omicron is now the dominant option in the U.S. However, President Joe Biden said on Tuesday that vaccinated Americans should feel comfortable celebrating Christmas and the holidays. Cities in New York, Chicago, and Los Angeles still have vaccine mandates in restaurants, bars, and public enclosed spaces. The benchmark 10-year U.S. Treasury bond interest rate fell to 1.46 percent in fixed income markets, down 0.02 percentage points. The two-year interest rate was 0.67 percent. The yield on bonds fluctuates prices in reverse.
Food Delivery Stocks
An increase also followed the rise in European stocks in food supply stocks. At the same time, concerns about the prospect of global recovery persisted. Just Eat Takeaway.com has risen 5.1% since a food delivery firm announced a deal with One Stop. Delivery Hero increased by 6% after announcing that it would reduce Foodpanda operations in the country.
Asian Shares and Hang Seng
Alibaba Group Holding grew 0.9 percent after increasing 5.3 percent. Bilibili, NetEase and JD.com trades rose 5.7 percent. The Nasdaq Golden Dragon China Index rose 7 percent in overnight trading in New York.
Hong Kong shares finally recovered after heavy losses; However, the general mood of investors has not improved much.
Flags of new policy easing in China have cheered investors. The central bank reduced the banks’ reserve requirement ratio on December 15 to bring new liquidity into the system. This week, lenders decreased their one-year loan rates for the first time since April 2020. China will try to stabilize its economy next year and keep economic growth reasonable.
Four firms first started trading on the mainland. China’s southern power grid technology has grown by 125 percent. Zhejiang Yayi Metal Technology grew by 114 percent. Wuhan Kotei Informatics rose by 26 percent. Hubei Biocause Heilen Pharmaceutical increased by 45 percent.
Asia-Pacific major markets grew, keeping track of developments in U.S. markets. Shares of South Korea rose 0.3 percent. Australian and Japanese stocks rose at least 0.2 percent.
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