The UK economy grew more slowly than previously thought in the third quarter
Wall Street stocks posted solid gains overnight after a three-day losing streak after Biden said that federal lockdown recommendations aren’t in the cards so far. Also on the positive side, Nike stocks jumped more than 6% after the company reported stronger-than-expected fiscal second-quarter earnings and sales, pointing to still robust consumer demand in the United States. Micron shares rallied nearly 11% as the firm topped expectations for quarterly profit and revenue. As such, the tech-heavy Nasdaq gained 2.4% while the Dow and the S&P 500 climbed 1.6% and 1.8% higher.
Asian equities have followed US indexes higher on Wednesday as Biden has provided some reassurances for investors. Still, regional equities gave up most of the early gains as virus-related concerns continue to deter buyers. The Shanghai Composite Index finished just below the flat-line, the Nikkei 225 in Tokyo advanced less than 0.2% and the Hang Seng in Hong Kong rose 0.57%. in part, risk sentiment has deteriorated after China announces sanctions on four US government officials.
In Europe, stocks opened mixed on Wednesday amid the dominating uncertainty surrounding the Omicron coronavirus variant, with regional governments reimposing partial or full lockdowns or other social distancing measures. On the data front, the UK economy grew more slowly than previously thought in the third quarter, increasing by 1.1%. In France, the PPI rose 3.5% in November, pointing to strong price pressures in the country.
In currencies, the dollar looks steady around mid-2020 highs, with major pairs clinging to tightening ranges in thinner pre-holiday trading. EURUSD keeps flirting with the 20-DMA, struggling to regain the 1.1300 figure since the start of the week. later today, the euro could come under pressure should the US GDP data exceed expectations and trigger a rally in the greenback.
