On Wednesday, Asian stock markets soared in the wake of Wall Street’s robust rebound, as investors speculated that the new COVID-19 virus strain would not pose as much of a threat to the world economy as originally thought.
The Majority Of The World’s Stocks Have Risen
As Germany’s parliament chose Olaf Scholz as its ninth chancellor since World War II, ushering in a new era for the EU’s biggest economy following Angela Merkel’s 16-year stint as chancellor, the Frankfurt stock market plummeted.
Scholz’s government has high hopes for modernizing Germany and fighting climate change. Still, it must first cope with the country’s most challenging period of the coronavirus outbreak, which is now in its most severe phase. French CAC 40 was flat at 7,065.10 while Germany’s DAX index fell 0.3 percent to 15,766.51. London’s FTSE 100 index rose by 0.4% to 7,365.25, its highest level since September 2011. Dow and S&P futures were both up 0.2 percent in their respective futures.
Earlier, Japan had predicted a decline of 3.0% in growth for the fourth quarter, but that has now been revised down to a drop of 3.6%. An overall decrease in consumer demand and trade was reflected in the change. After a dramatic reduction in coronavirus cases over the last year, experts forecast a rebound in the world’s third-largest economy this quarter. The Japanese parliament is expected to approve a record stimulus plan totaling $490 billion to help the economy recover from the consequences of the coronavirus pandemic, which includes cash handouts and aid for failing businesses.
A 1.4 percent increase in Tokyo’s Nikkei 225 index, and a 1.2 percent increase in Shanghai’s Shanghai Composite index, were also noted. Hong Kong’s Hang Seng index increased by less than 0.1 percent to a new record of 23,996.87. This week, there were two new all-time highs: the S&P/ASX 200 in Australia jumped 1.3% to 7,405.40 points, while the Kospi in South Korea advanced 0.3% to 3,001.80 points. During Tuesday’s trading session, the S&P 500 climbed 2.1 percent, its highest increase since March, and closed at 4,686.75. Stocks in both Nasdaq and the Dow rose to new all-time highs today, as both indexes saw gains in excess of one percent. Small-cap firms did better compared to the bigger market, which indicates that investors are enthusiastic about the economy’s future expansion. The Russell 2000 index climbed 2.3% to 2,253.79.
As a result, the market rebounded this week after losing ground for the last two weeks due to worries about an epidemic of COVID-19, contradicting labor market data, and increasing costs. , an early indication is that the omicron corona virus may be less hazardous than the delta corona virus, which has encouraged investors.
We need to wait a few more weeks before we know if omicron is more contagious, causes more severe illness, or is impervious to medications. A day after a 3.7 percent increase in the price of U.S. crude oil to $72.05 a barrel, the cost of oil remained constant on Wednesday. In the United States, benchmark crude price rose by 17 cents to $72.22 a barrel. On Tuesday morning, the price of Brent crude, the global benchmark for oil prices, climbed by 19 cents to $75.63 a barrel. According to the Federal Reserve, the yield on the 10-year Treasury note dropped from 1.48 percent late Tuesday to 1.46 percent. On Friday, it