The Wall Street market is embarking on a right step into 2022 with the U.S. and European equity markets slashing in tandem with rising oil prices and U.S. treasury yields.
The Dow Jones Industrial average rose 246.76 points or 0.68% at 36,585.06 while the S&P 500 added 30.38 points or 0.64% at 4,796.56 and the Nasdaq Composite ran 187.83 points or 1.2% at 15,832.80.
MSCI's global share gauge in 50 countries rallied for 3 consecutive years with double-digit gains as a result of a 28% jump on the S&P index last year.
The pan-European STOXX 600 index rose 0.5% at a close of 489.99 points in hopes of an economic recovery despite an increase in Covid-19 cases.
The US 10 -year yield benchmark hit a 6 -week high of 1.6384% as investors expected several rate hikes this year to offset inflation.
Oil prices rose US $ 79 a barrel on Monday driven by tight supply and hopes of a recovery in demand in 2022 even as OPEC+ looks poised to boost production.
The first day of the new year’s trading session saw the US dollar rise against a basket of other currencies in line with government bond yields as investors expected the Federal Reserve (Fed) to raise rates in 2022.
Meanwhile, gold prices fell more than 1% as risk-on market sentiment on equities put pressure on spot gold declining 1.5% at US1,801 per ounce and gold futures were down 1.57% at US $ 1,799.40 per ounce.
