The SPI 200 futures contract on the Australian markets were 19 points lower at 7513 at 8.00 am AEST, indicating a poor open for trading.

The Dow Jones Industrial Average closed at another all-time in 2022 while technology stocks dragged down the broad market.

Shares of economically sensitive companies in the energy, financials and industrials sectors rose Tuesday, aiding the blue-chip gauge in outperforming other major US indexes. A pullback in large techs, by contrast, helped drag the tech-rich Nasdaq Composite lower.

The Dow industrials added 0.6%, surpassing a record set Monday. The S&P 500 lost less than 0.1 percent, and the Nasdaq Composite shed 1.3 percent.

Australian shares hit a four-month high in the country's first trading session of 2022, with the S&P/ASX 200 up 2.0% to 7589.8 on Tuesday. All sectors ended in positive territories, with the benchmark index closing at its highest level since 13 Aug.

The energy segment was the big winner, up 3.9%. Paladin Energy added 7.4%, Whitehaven Coal was up 5.8% and Santos finished trade up 4.8%. Shares of Gud Holdings were up 3.8% after the company said it had completed its acquisition of AutoPacific Group.

The ASX 200 ended a six-session winning run on Friday, its final trading day of the year, with a 0.9% decline, but still rose 13% to top the charts for 2021.

Abroad, the pan-continental Stoxx Europe 600 was up 0.8 percent to close at a record. Major benchmarks were mixed in Asia. The Shanghai Composite Index lost 0.2% and Hong Kong’s Hang Seng Index gained 0.1%. Japan’s Nikkei 225 was up 1.8 percent as the weaker yen attracted investors to the country’s stock market.

Turning now to commodities, gold futures gained 0.8% to $US 1815. 00 an ounce; Brent crude rose 1.3% to $US80. 03 a barrel as OPEC and other oil producers struck a deal to keep crude flowing in a gamble that Omicron won’t beat down demand like previous waves; Iron ore climbed 0.7% to US$123.12 a tonne.

The selling extended to bond markets with the yield on the Australian 10-year bond climbing to 1.74% and the US 10-year Treasury rising to 1.65%. (Yield and price move in opposite directions.)

The aussie was fetching 72.38 US cents around 8. 0970, 0200 GMT, slightly above the previous close of 71.90. The WSJ Dollar Index, which measures the US dollar against 16 others, climbed to 90.04.

Asia

Chinese stocks fell on the first day of trading in 2022. Sectors tied to electric-vehicle production led the losses, offsetting gains among transportation stocks. The softness in EV shares came after the news that the government will reduce EV subsidies by 30% this year. Ganfeng Lithium tumbled as much as 5.3%, while EVE Energy and battery maker CATL fell 5.6% and 3.3%, respectively. Airline stocks received a boost after local media said a fuel surcharge for domestic routes would be dropped on Wednesday. Shares of Air China, China Eastern Airlines and China Southern Airlines rose between 1.9% and 3.5%. The Shanghai Composite Index fell 0.2% and the Shenzhen Composite Index slid 0.1%, while the ChiNext Price Index slumped 2.2%.

Hong Kong shares closed marginally higher, with property developers performing mixed, and the Hang Seng Index rising 0.1%. China Evergrande’s dismal 2021 sales figures kept a firm anchor on the property sector, but a technical rebound amid expectations for a revival in property sales provided support. China Overseas Land & Investment advanced 5.6%, New World Development increased 0.3% and Henderson Land fell 0.3%. Tech stocks dropped after China adopted new cybersecurity and algorithm rules, with the Hang Seng Tech Index down 1.0%. NetEase, JD. com and Meituan dropped 1.9 percent, 1.8 percent and 1.7 percent.

Japanese shares rose for the first time in 2022 on the first trading day of the year, led by auto and insurance stocks as the yen slumped to a five-year low. Toyota Motor rose 6.1% and Dai-ichi Life Holdings gained 6.0%. The Nikkei Stock Average increased 1.8%. USD/JPY is at 115.72 after hitting 115.82 earlier, its highest level appearing since January 2017. Weaker Yen is linked to higher risk appetite.

Europe

European markets gain as coronavirus-variant fears ease and higher crude helps oil majors The pan-European Stoxx Europe 600 finished 0.82% up.

The FTSE 100 in London closed 1.6% higher on the first trading day of the year. The FTSE 100 climbed above 7500 for the first time in nearly two years, and judging by the list of gainers it seems that investors are keen to put money to work in reliable, dividend rich equities, IG Group's chief market analyst Chris Beauchamp said.

“IAG has rocketed on hopes air travel will return to normal sooner than feared but otherwise it is banks, oil stocks and consumer spending that seems to dominate the top gainers scoreboard today,” Beauchamp said.

North America

The Dow Jones Industrial Average closed at yet another record in 2022 as technology stocks weighing on the broad market.

Shares of economically sensitive names in energy, financials and industrials backed by the blue-chip measure outpaced other major US indexes Tuesday. A pullback in large tech stocks, meanwhile, pulled the tech-heavy Nasdaq Composite lower.

The Dow industrials rose 0.6% to exceed a record set Monday. The S&P 500 declined less than 0.1 percent and the Nasdaq Composite lost 1.3 percent.

PARIS Stocks diverged in different corners of the market as investors monitored new data showing that US factory activity expanded and that the labor market remained tight.

A manufacturing sector survey had signs that supply-chain problems maybe easing. Other data showed the number of times workers quit their jobs hitting a record in November, with job openings close to record highs.

In bond markets, the yield on the benchmark 10-year US Treasury note was at 1.666% compared with 1.628% on Monday. When bond prices go down, yields go up

The increase in yields “probably is a sign that the bond market has more confidence in growth, and is more likely for the Fed to keep on a path of higher rates next year,” said Patrick Kaser, portfolio manager at Brandywine Global Investment Management.

Those changes are good for stocks that are tied to an ongoing economic recovery — and bad for growth stocks that trade at high valuations in anticipation of very low rates, he said.

On the S&P 500, energy stocks climbed 3.4 percent, financial stocks added 2.6 percent and industrial stocks rose 1.9 percent. In contrast, the technology group fell 1.1%.

When worries about the economy rise, traders often rush into tech stocks, wagering that those shares can provide growth.

When the outlook improves, they tend to rotate into companies that can strap themselves to a booming economy.

Investors are also sifting through data on the spread of the Omicron variant of Covid-19 in an effort to predict how the pandemic will impact the economy in the future. Cases hit a record in the US and hospitalizations are climbing but still lag pandemic peaks, data from Johns Hopkins University show.

“That mildness of Omicron and therefore, potential for less disruption, less lockdown measures all of these things should feed directly through into earnings expectations,” said James Athey, an investment manager at Abrdn.

Money managers are looking towards the next earnings season, which gets into full swing at the end of next week with reports from large financial companies.

Profits at companies in the S&P 500 are estimated to have rose 22% in the fourth quarter from a year earlier, according to FactSet. or with parsing of results, investors will be listening for clues on how a new Covid-19 variant that is spreading quickly may affect business.

“We believe this quarter is strong, but we believe guidance into next quarter could be a little murky from companies simply because of concerns around Omicron,” said Eric Freedman, chief investment officer at US Bank Wealth Management.

Among individual stocks, Apple shares dropped 1.2% after the company briefly reached a market value of $3 trillion on Monday before closing below that level. Shares of Tesla fell 4.2% after surging 14% on Monday.

Several travel stocks were higher. Shares in Royal Caribbean climbed 2%, United Airlines's stock rose 1.7% and Marriott International added 2.7%.