International Business: Global equity rally stalls as caution returns – Gulf Digital News

International Business: Global equity rally stalls as caution returns – Gulf Digital News

NEW YORK: World stock markets stalled at two-week highs and oil prices fell yesterday as increased restrictions in parts of the world to contain the spread of the Omicron Covid-19 variant tempered investor optimism about the economic recovery.

European shares turned lower after opening higher, while stocks on Wall Street were mostly in the red and Japan’s blue-chip Nikkei stock index slipped almost half a percent.

That left MSCI’s world stock index hovering near two-week highs but struggling to make much headway after three days of solid gains. It has risen more than three per cent this week and is set for its biggest weekly rise since early February.

US Treasury yields retreated following three straight days of gains for the benchmark 10-year note after data again showed a tight US labour market ahead of a key inflation reading today that could influence Federal Reserve policy-making.

Even if the year-over-year consumer price index gain comes in less than the expected 6.8pc, the Fed will not back off plans to quicken the tapering of its bond-buying programme, said Marc Chandler, chief market strategist at Bannockburn Global Forex.

“The Fed has made its pivot,” he said. “The labour market is strong enough and has enough momentum