Shares open higher after Wall Street record

Equities have been affected by the spread of the Omicron variant in recent weeks as governments around the world have imposed restrictions on trying to curb infections. However, some recent studies have suggested that the variant may result in milder disease with a lower risk of hospitalization.

The Centers for Disease Control and Prevention reduced the recommended isolation period for some people who test positive to try to minimize disruption. Nevertheless, many economists have lowered their forecasts for economic growth in the first quarter of next year.

“What comes from markets is the belief that Omicron will not be able to disrupt the economic recovery,”[ads1]; said Antonio Cavarero, chief investment officer at Generali Insurance Asset Management. “There is no visible risk reduction.” This is partly due to lower liquidity from fewer people working around the holidays, he added.

Equity investors have also benefited from a phenomenon known as the “Santa Claus Rally.” Indices such as the S&P 500 tend to rise in the last five days of the year and the first two days of the new year. Such a rally takes place at the end of about four out of every five years, according to the Stock Trader’s Almanac.

“It’s happening because people are starting to position themselves. People are reading everyone’s 2022 estimates and planning for next year,” said Jeffrey Meyers, a hedge fund and family law firm at Market Securities.

In pre-market trading, several large technology stocks increased, with Nvidia increasing 1.4% and Tesla increasing 1.7%. Vaccine manufacturers fell, with Novavax falling 3.3% and Moderna down 1%.

Oil prices rose, with the global benchmark index Brent oil rising 1.1% to $ 79.07 a barrel.

The yield on the benchmark index for 10-year government bonds ticked down to 1.477% from 1.480% on Monday, and fell for the third day in a row. Shorter bond yields rose, and the two-year yield reached 0.756%, the highest level since March 2020.

The S&P CoreLogic Case-Shiller National Home Price Index, which measures average house prices in large metropolitan areas across the country, showed that house price growth in the United States slowed in October.

The earnings season has largely ended. Among the few who still report is the egg producer Cal-Maine Foods, which is expected to post its results on Tuesday after the markets close.

Bitcoin fell around 3.5% from the level at 17:00 ET on Monday, trading around $ 49,150. The cryptocurrency has fluctuated around $ 50,000 in the last five days. The shares of the cryptocurrency exchange Coinbase fell 3% in pre-market trading.

Abroad, the pan-continental Stoxx Europe 600 increased 0.6%.

The Turkish lira weakened 0.8% to 11.8 against the dollar. The currency had strengthened after the government announced a new economic plan last week.

“[President

Recep Tayyip Erdogan

] may have bought Turkey for a while, but it’s still not a big deal, said Mr. Meyers. Speculative investors are likely to close short positions ahead of the long holiday weekend and can now put them back on, weighing down the lira, he said.

In Asia, most major benchmarks rose. The Shanghai Composite Index rose 0.4% and Hong Kong’s Hang Seng Index rose 0.2%. Japan’s Nikkei 225 rose 1.4%, led by a rise in technology stocks.

Shares of China Evergrande Group rose 9.5 percent. The heavily indebted property developer said that construction work had resumed on more than 90% of the stopped housing projects. It also said that they delivered apartments faster to home buyers.

Write to Anna Hirtenstein at anna.hirtenstein@wsj.com