Australian shares have edged higher in early trading as the Dow Jones index and S&P 500 closed at all-time highs overnight on a boost from retail sales.
The ASX 200 index was up 0.1 per cent to 7,515 by 10:22am AEDT.
The Australian dollar was trading at 72.51 US cents, slightly higher than yesterday.
Major global stock indexes were mixed on Wednesday as uncertainty over the surge in Omicron variant infections tempered optimism that harsh new curbs on business and travel may not be needed.
After a weak session in Asian stock markets, European stock markets traded mixed. The pan-European STOXX 600 slipped 0.1 per cent.
However, the Dow has risen six straight trading days, marking the longest streak of gains since a seven-session run from March 5 to March 15 of this year.
The Dow Jones index rose 0.3 per cent, to 36,4891.
Data on Wednesday showed the US trade deficit in goods mushroomed to the widest ever in November as imports of consumer goods shot to a record, as the coronavirus pandemic has limited spending by Americans on services.
Some early studies pointing to a reduced risk of hospitalisation in Omicron cases have eased some investors concerns over the travel disruptions and powered the S&P 500 to record highs this week.
The S&P 500 gained 0.1 per cent, to end at 4,793 points, while the Nasdaq Composite lost 0.1 per cent, to 15,766 points.
“The market started to recognise that the Omicron variant was in a strange way good news,” said Jay Hatfield, founder and chief executive of Infrastructure Capital Management in New York.
While much of the economic optimism has centred on the United States, the main European stock index is up more than 16 per cent so far this year, showing faith in a recovery from the depths of the COVID-19 crisis.
The MSCI world equity index, which tracks shares in 50 countries, rose 0.01 per cent as it hovered close to a five-week high hit in the previous session.
US crude stocks, gasoline and distillate inventories fell last week, while US oil production rose to the highest since May 2020, Energy Information Administration data showed on Wednesday.
Brent crude oil was up, trading at $US79.17 a barrel, by 07:02am AEDT.
As 2021 draws to a close, the main US stock indexes are on pace for their third straight year of stunning annual returns, boosted by historic fiscal and monetary stimulus.
The S&P 500 is looking at its strongest three-year performance since 1999.
The focus next year will shift to the US Federal Reserve’s path of interest rate hikes amid a surge in prices caused by supply chain bottlenecks and a strong economic rebound.
ABC/Reuters
