US Session (12/29/2021)

Stocks in the United States rose in thin trading as the slump in technology stocks eased amid hopes that the economic recovery will be able to withstand the surge in coronavirus cases. Treasury bonds fell in tandem with the dollar.

The S&P 500 rose 0.2% to reach the 70th record close of the year after spending much of the session little changed. The Dow Jones Industrial Average ended the day at an all-time high, as did the Russell 2000, a proxy for the reopening of trade. In late trading, the tech-heavy Nasdaq 100 also staged a comeback.

Omicron fears are easing as evidence mounts that the rapidly spreading strain causes milder symptoms, even as worldwide COVID-19 cases surpassed 1 million for the second day in a row. Coronavirus developments, as well as tightening Federal Reserve policy and China's outlook, are among the key risks for 2022.

Treasuries fell, sending the 10-year yield up 7.4 basis points to 1.55%, breaking through the 50-day moving average that had held it since November 29. Except for the yen, the dollar fell against all of its group of ten peers. Bitcoin remained below $48,000 after a drop that suggested waning interest in the most speculative assets.

COVID-19: Omicron may be more infectious - but do we need to worry if it  causes less severe disease? | UK News | Sky News

Asia Session (12/29/2021)

Asian equities were neutral as US stocks rose to a new all-time high amid light trading in the final days of the year. Treasury yields continued to rise.

China's damaged property developers and regulatory crackdown are once again in the spotlight as the year 2022 approaches. Two investors holding China Evergrande dollar bonds with coupons, due Tuesday, complained they had not yet been paid.

Alibaba Group is in talks with a state-owned Chinese corporation about selling its investment in Weibo a twitter-like social media service. Beijing is taking steps to limit the influence of China's tech behemoths in the media. Alibaba's stock remained stable in Hong Kong.

Shares varied in Japan, China, and Hong Kong, where artificial intelligence behemoth SenseTime soared on its maiden day of trading. After the S&P 500 set its 70th record closing of the year, US equities futures were little moved.

The 10-year Treasury yield has risen over its 50-day moving average for the first time in almost a month. Australia's 10-year bond rate has also risen. The dollar index remained stable and crude oil increased.

Europe Session (12/29/2021)

On Wednesday, equity-index futures in the United States remained stable as investors examined the economic ramifications of the omicron coronavirus outbreak. Treasury yields rose in tandem with the dollar.

After the rise in US equities stalled on Tuesday, contracts on the S&P 500 and NASDAQ 100 edged up. Tesla surged more than 2% in pre-market trading after Musk sold another $1.02 billion in shares, bringing him closer to his goal of decreasing his holding in the electric-car maker by 10%.

The STOXX Europe 600 index came within a hair's breadth of breaking another record, with retailers outperforming. As the UK markets reopened after Christmas, the FTSE 100 index rose to its highest level since February 2020. Following the sector's retreat in the United States and Asia, technology stocks fell. In some markets, volumes remained low into the end of the year.

Following a 17% increase in global equities, investors are closing out the year by taking profits. COVID, tightening Fed policy, and China's outlook are among the key risks for 2022. omicron worries are diminishing as evidence mounts that the rapidly spreading strain causes milder symptoms, even as worldwide COVID cases surpassed 1 million for the second day in succession.

UK's Prime Minister Johnson: Omicron is causing real issues, yet it is clearly milder than delta.

Turkey will promote the conversion of gold savings into liras - Gazette.

Russia’s Deputy PM Novak: Europe's banks' aversion to investing in upstream oil and gas projects will result in more shortages.

Thursday FX Option Expiries

USD/JPY: 115.25 ($300M), 115.00 ($300M)
USD/BRL: 6.0000 ($715M), 5.0000 ($706.1M), 5.9000 ($675M)
EUR/USD: 1.1550 (EU434.6M), 1.1340 (EU413.6M), 1.1290 (EU384.4M)
EUR/GBP: 0.8635 (EU582.8M), 0.8375 (EU541.2M), 0.9000 (EU515.9M)
GBP/USD: 1.3700 (GBP306.6M)