US stock index futures holding higher in early pre-market trade
Wall Street stocks recovered on Monday as omicron-related fears ebbed further, with reports of the symptoms being less severe boosting risk appetite across the markets. Travel-related companies led the gains during the session. Of note, the Dow Jones Industrial Average had one of its best days this year, adding 1.8% overnight. The S&P 500 gained 1.1% while the Nasdaq Composite rose 0.9%.
In individual stocks, Tesla shares fell to late-October lows in a knee-jerk reaction to reports that SEC is investigating the electric car maker alleging the company failed to properly notify its shareholders of solar panel defects. However, following the initial dip, Tesla stocks trimmed intraday losses to 0.6%.
Following suit, Asian equities advanced on Tuesday to bounce from one-year lows as anxiety about the coronavirus’s latest variant continues to ease. MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.3%. In Hong Kong, the Hang Seng index rallied 2.72% after the country’s central bank freed up $188 billion in liquidity through a policy easing. In China, exports and imports rose 22.0% and 31.7%, respectively, versus 17.2% and 19.5% expected.
European equities opened in positive territory on Tuesday, with US stock index futures also holding higher in pre-market trade. The regional Stoxx Europe 600 added 1.4% in early trading. On the data front, industrial production in Germany climbed by 2.8% versus a 0.8% rise expected and -1.1% last. However, on an annualized basis, production fell by 0.6% in October versus +8.8% expected.
In currencies, the dollar remains steady since the start of the week. Major currencies have settled in relatively tight trading ranges while awaiting fresh catalysts. EURUSD keeps flirting with the 1.1300 figure, struggling below the descending 20-DMA. As bearish bias persists, it looks like the pair may derail the 1.1260 region in the near term.