The U.S. dollar rallied as European stocks recovered on Monday after concerns over Omicron easing have boosted investor buying interest in stocks that could potentially perform well in an environment of rising interest rates.
Shares on Wall Street closed positive as bank -led economy -sensitive stocks and energy stocks rose 1.46% versus a 0.94% gain in growth stocks.
Federal Reserve (Fed) policymakers are likely to accelerate tapering of the bond -buying program at next week’s meeting in response to a disappointing labor market on November jobs report and are also likely to raise rates earlier than projected to keep inflation at bay.
Wall Street stocks eased from previous gains with the Dow Jones Industrial average up 1.87%, the S&P 500 plus 1.17%and the Nasdaq Composite reaching 0.93%.
The MSCI worldwide index was up 0.81% and the European -wide STOXX 600 index was up 1.28%.
Energy and banking stocks were the biggest drivers in Europe closing up 1.86% and 1.83% respectively while industrial and consumer base stocks were the strongest S&P sectors up 1.64% and 1.60% respectively.
Meanwhile, the MSCI Asia-Pacific index outside Japan fell 1%.
Shares of Evergrande China lost 20% after investors said there was no guarantee the firm had enough funds to pay off debt.
The dollar index, which measures a number of currencies against 6 other currencies, rose 0.095% to 96,292.
The Euro was down 0.27% at $ 1.1283 while the Yen was up 0.62% at $ 113.5000.
U.S. 10 -year treasury yields jumped 9.5 basis points to 1.436% after losing nearly 13 basis points last week.
The market is still expecting an aggressive Fed tightening to fight rising inflation.
Bitcoin declined 0.63% to $ 49,124.70 after hitting a low of $ 41,967 over the weekend as concerns of profit-taking and macro-economic activity have triggered sales worth nearly $ 1 billion across the cryptocurrency.
Brent crude oil price rose $ 3.20 at $ 73.08 a barrel while US crude oil price added $ 3.23 at $ 69.49 a barrel.
Gold futures were down 0.3% at 1,779.50 an ounce.
