(New York) Markets rallied on Monday, some timidly, only partially making up their Friday losses caused by the spread of a new variant of the coronavirus that could weigh on the economy.
On Wall Street, the Dow Jones advanced 0.68%, far from catching up with its worst session of the year on Friday (-2.53%) in a poor market the day after the Thanksgiving holiday. The NASDAQ index, with strong technological coloring, regained much of the lost ground, taking 1.88% after a loss of 2.23% the day before. The S&P 500 advanced 1.32%.
Europe gave up some gains during the afternoon, to end with a modest rebound, in Paris (+ 0.54%), Frankfurt (+ 0.16%), London (+ 0.94%) and Milan (+ 0.83%).
Before the shock of Friday, the markets had chained several weeks of continuous rise.
“Investor confidence has been shaken,” said Michael Hewson, analyst at CMC Markets, who considers that the rebound can be considered “at best as cautious”, in particular because “of the prospect of the Omicron variant even more infectious”.
This new variant presents “a very high risk” globally, the WHO warned on Monday, while market experts take a dim view of a return to restrictions on mobility from Tokyo to London which inevitably hamper mobility. the economic activity.
“The markets seem less concerned with the prospect of a new variant than with the reaction of governments, much more aggressive than before,” says Hewson.
There is “no reason to panic” over the spread of the new variant of COVID-19, US President Joe Biden said Monday in a speech at the White House.
“The consensus is that the market has probably overreacted,” said Art Hogan of National Securities.
Limited rebound for oil
The rebound in oil prices was finally limited on Monday after Friday’s plunge.
The week promises to be eventful between demand assessment, Iranian nuclear negotiations and OPEC + meeting.
The US barrel of WTI for delivery in January rose 2.64% to 69.95 dollars, that of North Sea Brent for the same month only recovered 0.99% to 73.44 dollars.
Oil stocks rose, like TotalEnergies in Paris (+ 1.65% to 41.20 euros). Companies in the energy sector in general have had the wind in their sails, such as EON (+ 1.76% to 10.99 euros) or RWE (+ 2.67% to 35.05 euros) in Frankfurt.
After gaining nearly 1% against the greenback on Friday, the euro lost ground against the dollar, dropping 0.36% to $ 1.1276 around 8 p.m. GMT.
Bitcoin also benefited from the general market rebound, appreciating 2.98% to $ 58,018, after an already marked rise on Sunday (+ 3.14%).
Last tweet for Jack Dorsey
Twitter announced Monday the departure, with immediate effect, of its managing director and co-founder Jack Dorsey, who will be replaced by the group’s technological director, Parag Agrawal. After a brief suspension pending the announcement, the title ended down 2.78% to 45.76 dollars.
The stuck automobile
The French automotive sector has failed to recover, after the downgrade by the equipment manufacturer Faurecia of its financial targets for 2021. The company announced a further decline in automotive production in Europe as well as “operational difficulties In a project in the United States and slipped 7.93% to 37.14 euros. In Germany, Continental also lost 4.22% after a sell recommendation from Goldman Sachs.
BT climbs
The stock of British telecoms operator BT climbed 6.10% to 163 pence in London after gaining up to 9.5% on rumors of a takeover bid reported in the British press, before be denied by the Indian group Reliance Industries.