Stock markets are leaping higher, with the FTSE 100 up 100 points and Wall Street up across the board.
- Market rally enters higher gear
- 2021’s performance receives a boost
- FTSE 100 back on course for YTD highs
Last week’s sellers have been rudely pushed out of the way in a mad scramble to get back into equities now that Omicron fears are receding almost as fast as they appeared. Billions have been ‘wiped on’ to share prices since Friday’s lows, December living up to its reputation as one of the strongest months for equities. In retrospect the variant news from just after Thanksgiving was almost ideally-timed to hit a market in need of a pullback, and this movement has thrown up some great buying opportunities in a host of sectors.
Today it is the turn of tech and small caps to lead the way higher, but practically every index is enjoying solid gains, and the warnings signs of last week have now been replaced with ‘all clear’ signals. Risk is back on in a significant way; if markets can keep this up then we could be in for a stellar finish to what has been an already excellent year for equities overall.
In London the FTSE 100 has found itself back on course for the highs of the year, recovering all the gains lost in the post-Thanksgiving Omicron slump. UK investors will be hoping this markets a continuation of the 2021 rally, after a tough summer that saw the index struggle for momentum. Bounces in materials and energy have underpinned the gains, and point towards renewed strength for the ‘global reopening’ trade.
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