United States stocks have made gains on the first trading day of 2022, boosted by electric car marker Tesla and IT giant Apple.
- The Dow Jones index rose 0.5pc to 36,520, the S&P 500 rose 0.5pc to 4,790 while the Nasdaq Composite rose 1pc to 15,809 at 7:15am AEDT
- The FTSE 100 was closed, the DAX rose 0.9pc to 16,021 and the CAC 40 rose 0.9pc to 5,491
- The Australian dollar fell 1pc to around 71.87 US cents at 7:30am AEDT
That bodes well for the Australian share market today.
The Australian dollar was down 1 per cent, to around 71.87 US cents, at 7:30am AEDT.
At 7:15am AEDT, the Dow Jones index was up 0.5 per cent, to 36,520, the S&P 500 rose 0.5 per cent, to 4,790 while the Nasdaq Composite rose 1 per cent, to 15,809.
Tesla rose 12.7 per cent after the company's quarterly deliveries exceeded Wall Street estimates, riding out global chip shortages as it ramped up production in China.
The stock gave the biggest boost to the S&P 500 and the Nasdaq, followed by Apple and Nvidia.
Apple's shares reached a high of $US182.88, making it the first US company to post a market capitalisation of $US3 trillion ($4.2 trillion).
The milestone is mostly symbolic but it represents investor recognition of Apple's success over the past few years as the company has reported several record-breaking quarters of big growth in all of its product lines.
Apple's cashflow also makes the stock a safe haven during times of market uncertainty.
Banks gained as US Treasury yields increased on expectations of interest rate rises in the US this year.
Another economically sensitive sector, energy, firmed as crude prices rose on tight supply and hopes of a further demand recovery in 2022.
"Looks like the reopening trade is in full force this morning and it basically says the market is looking through Omicron … it's something we can live with, like the seasonal flu," Great Hill Capital New York's Thomas Hayes said.
Meanwhile, the US Food and Drug Administration authorised a third dose of Pfizer and BioNTech's COVID-19 vaccine for children aged between 12 and 15 years.
However, shares in Pfizer and BioNTech fell.
All of Wall Street's main indexes ended 2021 with monthly, quarterly and annual gains, recording their biggest three-year advance since 1999.
The benchmark S&P 500 added 27 per cent in 2021 and reported 70 record-high closes, the second-most ever, in a tumultuous year hit by new COVID-19 variants and supply chain shortages.
While the Dow added 18.7 per cent for the year, the tech-heavy Nasdaq gained 21.4 per cent.
In Europe, markets ended at record highs for the European STOXX 600 index.
The FTSE 100 was closed, the DAX in Germany rose 0.9 per cent, to 16,021 and the CAC 40 in Paris gained 0.9 per cent, to 5,491.
Oil prices gained, with Brent crude up 1.5 per cent, to $US78.99 a barrel.
Spot gold fell 1.5 per cent, to $US1801.63 an ounce.