In what could be considered good news for the world economy, global equities made a comeback on Thursday, riding on the hope that the new Omicron variant of Covid-19 will not prove as dangerous as initially anticipated by many experts. According to recent reports, the variant will not halt economic recovery in the US, and as a result, the dollar also saw some gains amidst the increased risk trading.
According to economic data, the number of Americans who have filed for unemployment benefits last month is less than the anticipated number. Even the layoffs have also come down to the lowest level in the last one and half years. Both these indicators are positive for the US economy and show that the economic recovery is well on its way.
The growth figure posted by Dow was its best gain since March, with Boeing giving the biggest push after the Chinese authority’s approval of its 737 Max aircraft. MSCI gained 0.75% while DJI registered an increase of 1.82%. Nasdaq Composite and S&P 500 added 0.83% and 1.42% respectively.
The circumstances are not the same in European countries as shares fell in the backdrop of tightening restrictions. Contrary to other parts of the world, countries in the European Union are imposing travel bans to cut the infection rate and spread of the virus. This is bound to have a negative impact on the nascent recovery that the region has witnessed in recent times.
The recovery of the dollar is also limited as investors are waiting for the report on non-farm payrolls from the department of US employment. According to the Reuters poll, the US economy is estimated to have created around 550,000 new jobs in the last month.
The prices of oil also witnessed an uptick after a series of fluctuations with the benchmark swinging in the range of $5. This has come after the decision of the organization of Petroleum Exporting Countries (OPEC) decided to stick with the plan of slowly boosting the output of the oil.