Wall Street shows confidence to start the new year

BOSTON, Jan 3 (Reuters) – World markets got 2022 off to an optimistic start, with U.S. and European equity markets powering higher on Monday, in parallel with rising oil prices and U.S. Treasury yields.

The Dow Jones Industrial Average (.DJI) rose 60.52 points, or 0.17%, to 36,398.82, the S&P 500 (.SPX) gained 9.76 points, or 0.20%, to 4,775.94 and the Nasdaq Composite (.IXIC) added 73.86 points, or 0.47%, to 15,718.83.

Leading the way was Tesla Inc (TSLA.O)
, whose shares were up nearly 10% in early trading Monday after reporting stronger-than-expected quarterly deliveries of its electric cars. read more

The S&P index surged nearly 28% last year driving MSCI’s 50-country index of world stocks (.MIWD00000PUS) to its third consecutive year of double-digit gains. read more

London’s traders were enjoying their final day off, but mainland Europe made a lively start, notching an all-time peak for the STOXX 600 index (.STOXX) after an encouraging flurry of euro zone and eastern European data. read more

The benchmark U.S. 10-year yields US10YT=RR touched a near six-week high to yield 1.6053%, with investors expecting a series of interest rate rises this year. /FRX

The commodity markets were also quickly back in the swing of things after their stellar last 18-20 months.

Oil rose above $78 a barrel on Monday, supported by tight supply and hopes of a further demand recovery in 2022, despite OPEC+ looking set to agree to a further output increase and concern persisting about the demand impact of rising coronavirus cases. read more

“Infection rates are on the rise globally, restrictions are being introduced in several countries, the air travel sector, amongst others, is suffering, yet investors’ optimism is tangible,” said Tamas Varga of oil broker PVM.

The dollar also ticked up against its major rivals as an upbeat market mood. read more

Gold prices slipped as higher bond yields and rallying equities weighed on the metal’s safe-haven appeal as the new year gets under way, pushing it down from a six-week peak hit earlier in the session. read more

Spot gold dropped 1.4% to $1,802.12 an ounce, having touched its highest since Nov. 22 at $1,831.62. U.S. gold futures fell 1.07% to $1,807.90 an ounce.

Editing by Marguerita Choy

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