The floor of the New York Stock Exchange has traders working on it.
AP Photo/Richard Drew
Even as cases around the world topped one million for a second day in a row, gold retreated from one-month highs, as global shares rose on Wednesday.
US stock futures are up, suggesting more gains later. The S&P 500 futures were up 2%, while those on the Nasdaq 100 were up.
After hitting a record high this year, stocks have hit a new high. Thanks to the introduction of successful Covid-19 vaccines and ultra-loose central bank monetary policy, this is thanks.
The backdrop is going to be tougher next year as inflation and central banks start to wind down some of the economic support they have given since the start of the epidemic.
The environment for US equities next year may be more difficult, with rising wages and inflation possibly weighing on margins and earnings growth, and the risk of tighter Fed policy putting pressure on valuations, especially if longer treasury yields pick up next year," the Sax.
The Omicron variant continues to rage and fails to register on the market, even as global cases topped a million for the second day in a row.
The World Health Organization warned on Wednesday that Omicron could overwhelm healthcare systems despite early studies showing it causes milder illness. Governments around the world are scrambling to put restrictions in place to stop the spread of the disease.
After an extended market holiday, the UK's benchmark index gained 1%. In Asia overnight, the Shanghai Composite lost 0.9% and the Nikkei fell 0.6%.
The dollar was up against a basket of currencies. The US dollar is on course for its biggest annual increase in four years in 2021, as investors look to the US currency for higher interest rates.
This puts pressure on gold, which tends to perform better when the US dollar is weak. Concerns about rising inflation and the risk to the economy from the Omicron variant drove gold to its highest point in a month.
"The Omicron variant is likely providing inflation expectations a tailwind as some fear widespread lockdowns and tighter social distancing measures may cause supply chain issues, which could drive up prices," Thomas Westwater said.
Inflation expectations may soon lose steam with Covid fears starting to diminish, despite a significant increase in daily cases across key economies.
The yellow metal was down around 0.4% on the day at $1,803.85 an ounce, still close to its highest since November 22.
Business Insider has an original article.
