Tuesday, 4 January 2022

Markets start 2022 on positive note

Markets rose on Monday.

The S&P 500 rose 0.6 percent to a record high on the first trading day of 2022. The STOXX Europe 600 rose 0.5 percent.

“We’re still in that modestly optimistic outlook for the year ahead and think the economy and corporate profits are set up to support rising equity prices, at least in the first part of the year,” said Tom Hainlin, global investment strategist at US Bank Wealth Management.

Investors shrugged off the continuing rise of COVID-19 cases, with Liz Young, SoFi’s head of investment strategy, suggesting that the Omicron wave could be over faster than those of earlier variants.

However, Young also said that “what we saw with this last wave is it impacted supply and not demand, which tells me that inflation is still here to stay for the first half of 2022”.

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