U.S. Index Futures Steady; Treasuries Dip

U.S. equity-index futures were steady on Wednesday as investors assessed the economic implications of the omicron coronavirus outbreak. Treasury yields ticked higher along with the dollar.

U.S. equity-index futures were steady on Wednesday as investors assessed the economic implications of the omicron coronavirus outbreak. Treasury yields ticked higher along with the dollar.

Contracts on the S&P 500 and Nasdaq 100 edged up after the rally in U.S. stocks paused on Tuesday. Tesla Inc. gained more than 2 per cent in pre-market trading after Chief Executive Elon Musk sold a further US$1.02 billion off shares, taking him close to his target of reducing his stake in the electric-car maker by 10 per cent. 

The Stoxx Europe 600 index nudged to within a whisker of another record, with retailers outperforming. The FTSE 100 Index climbed to its highest level since February 2020 as U.K. markets reopened after Christmas. Technology shares declined, following the sector’s retreat in the U.S. and Asia. Volumes remained thin into the end of the year in some markets. 

Investors are rounding out the year by booking some profits after a 17 per cent jump in global equities. The coronavirus, Federal Reserve policy tightening and China’s outlook are among the key risks for 2022. Omicron fears are easing on growing evidence that the fast-spreading strain leads to milder symptoms, even as worldwide COVID-19 cases rose above 1 million for a second straight day.

“Although omicron cases in the U.S. and Europe amongst others, continue to surge, it has yet to make its presence felt negatively in economic data,” Jeffrey Halley, a senior market analyst at Oanda, said in a note. “With market activity much reduced for the holiday season, investors continue to tentatively price in a global recovery hitting a minor bump, and not a pothole.”