The pan-European STOXX 600 index was up 1.15% at 1212 GMT, while the German DAX and the British FTSE were up around 1%. Wall Street futures were also up 1% and the MSCI World Stock Index was up 0.4%.
Semiconductor and chip stocks were in the spotlight, with gains of 1.2-1.7% from ASML Holding, ASM International and STMicroelectronics following a positive business update from US maker Micron Technology.
“The game is trying to assess to what extent the omicron story is going to cause uncertainty,” said Olivier Marciot of Unigestion. “Although it is going to have an impact on life and the real economy for a few weeks, the markets hope that it will not cause what everyone fears, which is a global slowdown.”
Wall Street lost more than 1% on Monday as investors worried about the possibility of omicron undermining the economic rebound, and the setback suffered by President Joe Biden’s social spending bill.
The gloomy US session highlighted markets’ fear that the rapid rise in omicron cases will again force governments around the world to impose lockdown measures, potentially stifling the fragile recovery.
Still, investors were cautiously optimistic Tuesday that the economic hit wouldn’t be as bad this time, buying stocks and selling perceived safe-haven currencies like the dollar and yen.
Amid low trading volume on the eve of the year-end holidays, MSCI’s index of Asia-Pacific equities excluding Japan improved 1% after falling to its lowest level in a year on Monday.
The dollar index, which compares the greenback to a basket of six major currencies, was down slightly, to 96,485 units. The yen, which is usually sold when risk appetite increases, rose to 113.7 units per dollar.
Cryptocurrencies, which are often a reliable indicator of risk sentiment, were on the rise. Bitcoin gained more than 4% after the downtrend of recent weeks, while the second most important cryptocurrency, ether, advanced 2%.
Crude prices were up more than $ 1 despite concerns that the omicron spread will reduce fuel demand and signs of improving supply.
Tom Wilson, Reuters agency
Source From: Ambito
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