WASHINGTON/LONDON- Equities around the globe traded little changed as oil prices fell and the US dollar dipped against most major currencies although it has had its best year since 2015 with a 6.7 percent rise.
With several markets in Asia and Europe closed on Friday, trading volumes were thin and most markets directionless.
The MSCI World Index shed 0.07 percent. The index has surged 17 percent in 2021, its third consecutive year of double-digit gains.
Analysts say the US economy has proven resilient in the face of pandemic-related challenges, and many expect the global economy will still expand at a well-above-trend pace.
After initially tumbling in December, world stocks recovered over the holiday period as investors became reassured economies could handle the surge in Omicron coronavirus cases, and are heading back toward record highs.
“As far as COVID is concerned, for now, market participants may stay willing to add to their risk exposures, and perhaps push equity indices to new highs, as several nations around the globe held off from imposing fresh lockdowns, despite record infections around the globe the last few days,” said CharalambosPissouros, head of research at Cyprus-based brokerage JFD Group.
On Wall Street, New Year’s Eve trading ended near record highs on Friday.
All three major US stock indexes scored monthly, quarterly and annual gains, notching their biggest three-year advance since 1999.
Investors have held onto expectations for resilience in the global recovery into 2022 and the prospect of further gains if money remains cheap and corporate profitability high.
This year’s “everything rally” has seen a wall of cheap central bank cash, government stimulus and strong economic rebounds out of the pandemic make it hard not to profit from soaring asset prices.
