European equities crept marginally higher on Wednesday, as markets remained optimistic that the Omicron coronavirus strain will have a minimal economic impact, despite increasing global cases and new restrictions.
At 0857 GMT, Europe's STOXX 600 index was up 0.1 percent, while the MSCI world equity index, which includes stocks from 50 nations, was also up 0.1 percent. Asian stocks rose broadly in the face of dwindling year-end liquidity.
However, the FTSE 100 index in London fell 0.2 percent, and Wall Street futures were in the red.
The modest advances in Europe come as Germany, Scotland, Ireland, Portugal, the Netherlands, and South Korea have recently reinstated lockdowns or other activity restrictions.
"Each succeeding lockdown appears to have had a less severe economic impact than the prior one. That, I believe, is largely due to the econmainly duesive adaption "Arnab Das, Invesco's global market strategist, stated.
Das stated the markets were also clinging to that hope this time around.
"Maybe the restrictions won't be as severe, as comprehensive or as long-lasting as in 2020 and 2021," he continued.
On Monday, the World Health Organization's chief scientist warned it would be "unwise" to conclude from preliminary evidence that Omicron is a milder form than earlier ones.
Additionally, an Imperial College London study discovered that the Omicron form does not appear milder than the Delta type.
Meanwhile, US Vice President Joe Biden warned Americans about the dangers of not being vaccinated and dispatched military soldiers to assist overburdened hospitals.
Currency market volatility was typically modest as trading slowed in the run-up to Christmas. The US dollar index was slightly higher on the day, up 0.1 percent to 96.547, while the euro was down 0.2 percent.
The Australian dollar, sometimes viewed as a liquid proxy for risk appetite, fell marginally to $0.7149.
Turkey's currency was once again highly volatile, as markets analyzed steps proposed by President Tayyip Erdogan and the Turkish central bank to protect local currency savings from precisely such movements. Expected volatility increased to its most significant level on record.
German Bund rates remained near three-week highs as risk sentiment rose in equity markets, aided by hawkish comments from the European Central Bank.
European gas prices increased to a new record high following a significant pipeline carrying Russian gas to Europe. Oil prices remained stable.
Certain western politicians and industry professionals have accused Russia of delaying gas supplies to Europe in the face of political tensions over Ukraine and delays in the certification of another pipeline, Nord Stream 2. Russia maintains that there is no relation.
Invesco's Das said that investors would be watching for any unforeseen escalation of tensions between Russia and Ukraine over the Christmas period.
Russia denies Ukrainian and US charges that it is prepared to invade Ukraine next month with tens of thousands of Russian troops stationed along the border.
Elsewhere, cryptocurrencies increased modestly, with bitcoin up 0.7 percent to $49,273.32, but considerably behind the November all-time high of $69,000.
