Stocks rebound In early tradIng on Omicron news

398
1
Stocks rebound In early tradIng on Omicron news

SYDNEY, NSW, Australia -- Early optimism in Asia on Tuesday, which sent stocks flying was punctuated by remarks from the CEO of Moderna that vaccines may not be as effective against the Omicron variant, and that it may take months for a new vaccine to be developed.

Charalambos Pissouros, head of research at JFD Bank, told CNBC Tuesday that the week's moves show how sensitive market participants are to Omicron headlines.

We believe that this will be the main theme for a while. We are very reluctant to say that market concerns have diminished, and yesterday's rebound is the beginning of a long-lasting recovery. Pissouros said that any new negative headline has a high chance of resulting in another leg of massive selling.

The NikkeiNikkei 225 in Japan, which had been up 1.2 percent in early trading, reversed course to dive 462.16 points, or 1.63 percent, to close at 27,821. In Hong Kong, the Hang Seng fell by 376.98 points or 1.58 percent to 23,475. China's Shanghai Composite was ahead just 1.19 points or 0.03 percent at 3,563, but it didn't take into account the gyrations. The Australian All Ordinaries increased by 24.90 points or 0.33 p recently to 7,587. The fall interest rate yields has helped the U.S. dollar get caned by the majors. The euro was trading at 1.1363 in mid-morning European trading. The British pound rose to 1.3368. The Australian and New Zealand dollars were the laggards, both of which were unchanged at 0.7127 and 0.6823 respectively.

Overnight on Wall Street, the Dow Jones Industrial Average rose 236.6 points, or 0.68 percent, to 35,135. The Nasdaq Composite gained 291.18 points, or 1.88 percent, to 15,782. The Standard and Poor's 500 reclaimed 60.65 points, or 1.32 percent, to 4,655.