Despite turmoil at the end of the year, 2021 has been a great year for equities. Despite a rising dollar, it is especially a great year for most commodities, and thus the FTSE 100, which is rich in companies from this sector. Although precious metals had a tough ride, the year was particularly prolific for the energy sector, led by oil, which has risen by almost 50% since January 1. The economic recovery, which caused an increase in the transport of people and goods and more production and consumption, has boosted demand for crude oil, which is gradually recovering from the pandemic shock of 2020. At the same time, OPEC+, which brings together the world's largest oil producers, has ensured that the market does not fall back into its past pattern of oversupply relative to demand. By striving to raise its production only gradually, the enlarged cartel has given itself the means to support oil prices, much to the dismay of hydrocarbon-dependent powers.

Back to equity markets, which are still in good shape as Wall Street rallied sharply yesterday, allowing the S&P500 to close above 4,720 points for the first time in its history. Early this morning, the Nikkei (+0.05%) and the Hang Seng (+1.13%) nibbled at the ground, not to say they treaded water. Investors are reassured by reports that the Omicron variant may be milder than the previous strains and cause less disruption to the economy.

The FTSE 100 is inching up 0.2 % this morning. The London Stock Exchange will close at 1230 GMT today and will not open again until Wednesday.

In today’s news, HSBC Holdings has agreed to buy Indian mutual funds business of L&T Finance Holdings for $425 million in a bid to develop its wealth management business in Asia.