Stock markets around the world are once again optimistic, which may translate into increased purchases of company shares.
American stocks, and thus also the main stock indexes, continued their growths yesterday. Fading concerns about the impact of omicron mutations on the economy and possible additional restrictions may have contributed to this. As a result, the specter of another lockdown may fade and the restrictions in air transport may prove to be short-lived.
US and European stock markets are in the green
In such an environment, the Nasdaq rose 3 percent as technology stocks rebounded after last week's sell-off. The S&P 500 index jumped 2.1 percent and the Dow Jones rose 1.4 percent, making it the best day for the S&P 500 since March 1 of this year and the best day for the Nasdaq since March 9. As a result, the S&P 500 index returned to 4700 points, the Nasdaq 100 to 16390, and the DJIA to 35800 points.
Strong gains could also be observed on European trading floors. Europe's major stock indices posted gains of more than 2 percent on Tuesday, except the FTSE 100, which rallied 1.5 percent.
On the data front: German investor morale fell less than expected in December and October industrial activity rose at its strongest pace in a year, while Eurozone GDP growth was unchanged at 2.2 percent in the third quarter.
Oil rose, but new threats emerge
Crude oil also consolidated its rebound from last week's 14-week low to above $72 per barrel, which may have boosted the share prices of energy companies.
However, a new threat and risk of heightened volatility and uncertainty may be building in this market. Although Brent Crude oil futures are trading above $75 per barrel this morning, the market may begin to focus on the nuclear talks in Iran.
It is also not insignificant that tensions between Moscow and Kyiv have increased. U.S. President Joe Biden has warned Russian President Vladimir Putin that he could face harsh economic sanctions from the West, including the disruption of the Nord Stream 2 gas pipeline to Europe if Russia attacks Ukraine.
Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Forex service)
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