Stocks, futures mixed; dollar and Treasuries rise

Bloomberg

Stocks were mixed and US futures fluctuated on Thursday in the wake of another Wall Street all-time high on light volumes in the final days of the year. Treasury yields trimmed an advance.
The Stoxx Europe 600 gauge was little changed at the open, with technology shares bouncing back to pare some of Wednesday’s drop. Contracts on the S&P 500 and Nasdaq 100 wavered after the S&P 500 eked out a gain to hit its 70th record close of the year on Wednesday.
The 10-year Treasury yield pared an advance but stayed above its 50-day moving average. European bonds were mostly steady after Wednesday global sovereign-bond retreat. A dollar gauge rose. Iron ore halted a three-day decline and resurfaced above $120 a ton on potential support from restocking by China’s steel mills. Crude oil was steady.
As the year draws to a close, investors are contemplating the implications of the fast-spreading omicron coronavirus variant, decreasing stimulus and elevated inflation stoked by supply-chain bottlenecks. Key questions include whether Treasury yields will push higher and how much impetus is left in the equity bull market.
“Despite global surges in Covid cases, the markets are reflecting the new reality that Covid is here to stay albeit more on our terms than its,” Kevin Philip, managing director at Bel Air Investment Advisors, said in an email. Next year, “we are facing less of a Covid-influenced world, and a return towards the normalcy,” he said.
The number of Covid-19 cases soared 32% to a record 1.73 million on Wednesday, marking the third day in a row with more than a million new infections worldwide. Cathay Pacific Airways plans to scrap Hong Kong flights as the city tightens quarantine rules for aircrew.
Still, countries including Italy and Australia are dialling back their Covid curbs in an effort to keep essential services running, support their economies and allow people to connect. More evidence is emerging that omicron may be less dangerous, particularly in vaccinated people, as virus deaths in the US declined.
China’s CSI 300 index climbed on expectations of more steps to bolster economic growth amid an extension of some personal income-tax breaks and calls for policy easing.
China’s battered property developers and regulatory crackdown are again in focus heading towards 2022.
Developer Kaisa Group Holdings Ltd. faces an initial deadline for coupon payments totalling $154 million on two dollar bonds Thursday. A unit of China Evergrande Group plans to cut its stake in China Calxon Group Co. after failing to repay debt in time.
Elsewhere, Bitcoin extended its December retreat and was trading around $47,000.