Equity markets: Global markets mixed after Wall St fall, virus turmoil

BEIJING –

Global stocks and Wall Street futures were mixed on Thursday as traders tried to figure out the potential impact of the latest coronavirus variant.

London and Frankfurt opened lower and Shanghai and Tokyo fell. Hong Kong advanced.

It is unclear whether Omicron is more dangerous than other variants. But governments have responded by tightening travel controls. This is fueling unease about the prospects for a global economic recovery.

On Wall Street, the future for the Dow Jones Industrial Average rose 0.6% and the S&P 500 index rose 0.5%. It fell 1.2% on Wednesday, despite surveys showing hiring and factory activity in November were better than expected. Markets were already sliding when the White House announced the discovery of the first Omicron case in the United States.

On Wednesday, the Dow fell 1.3% and the Nasdaq 1.8%.

During Thursday’s early trading day, the FTSE 100 in London lost 0.9% to 7,105.89 and the DAX in Frankfurt fell 1.4% to 15,263.35. The CAC in Paris fell 1.2% to 6,798.75.

In Asia, the Shanghai Composite Index lost less than 0.1% to 3,573.84 and the Nikkei 225 in Tokyo by 0.6% to 27,753.37. Hong Kong’s Hang Seng rose 0.6% to 23,788.93.

The Kospi in Seoul rose 1.6% to 2,945.27, while the S&P-ASX 200 in Sydney lost 0.2% to 7,225.20.

The Indian Sensex rose 0.8% to 58,165.65. New Zealand and Singapore fell as Jakarta advanced.

The latest data “painted an optimistic picture for economic conditions, but that appears to be on the decline as the Omicron variant has the potential to change the landscape,” IG’s Yeap Jun Rong said in a report.

Investors were already confused when Fed Chair Jerome Powell said the US central bank could withdraw stimulus earlier than expected due to persistently high inflation.

The Fed’s bond purchases inject money into the financial system, causing stock prices to rise. The S&P 500 has more than doubled since March 2020.

In energy markets, the US benchmark crude rose 87 cents to $66.44 in electronic trading on the New York Mercantile Exchange. The contract fell 61 cents to $65.57 on Wednesday. Brent oil, the price standard for international oils, gained $1 to $69.87 a barrel in London. It lost 36 cents the previous session to $68.87.

The dollar gained from 112.79 yen on Wednesday to 113.21 yen. The euro rose to $1.1323 from $1.1319.