Stocks rose with U.S. equity futures Tuesday, signaling a rebound after Monday’s slump, as investors bet that vaccines can help tame the omicron virus outbreak. Treasuries fell.
Sterling firmed on Thursday as the discovery of the first case of the Omicron variant in the United States weighed on the dollar overnight, but trading was choppy amid uncertainty about whether the Bank of England will hike interest rates this month.
Fresh concerns about the efficacy of existing vaccines against the omicron coronavirus strain pushed markets back into risk-off mode on Tuesday, with stocks in Europe dropping alongside U.S. equity futures. Bonds gained as investors sought havens.
The dollar was on course for a second straight week of gains against major peers on Friday, ahead of a key U.S. jobs report that could sway the timing of Federal Reserve interest rate increases. Sterling headed for its worst week in 11 after the Bank of England caught the market off-guard by keeping rates steady on Thursday.