Oil back above 70 USD, Nasdaq jumps beyond 16,000 USD

The WTI benchmark climbed above the important 70 USD threshold again, where the 200-day moving average is currently located. As long as oil trades above 70 USD, the medium-term uptrend remains intact, targeting 76 USD now.

In equities, bulls dominated again, and it looks like the recent correction might be over, despite markets pricing even more Fed hawkishness. At the time of writing, the Nasdaq 100 index was up more than 1%, rising above the psychological 16,000 USD level. EU bourses advanced strongly as well, pushing the DAX index to 15,600 EUR.

Bond yields also rose, with the 10-year US yield jumping to 1.45%. 

Elsewhere, the EURUSD pair still trades below the descending trend line, currently at 1.1350. Still, it looks like the market is getting ready for a significant move, either above the trendline to cancel the bearish trend or to new lows below 1.12.

According to the recent data, the Omicron scare is waning quickly as it might be more transmissible but less dangerous. But, on the other hand, that leaves more room for Fed's monetary policy tightening, which is usually unfavorable for the overall sentiment in the markets.

Later in the day, German and European ZEW surveys are due, expected to decline sharply amid the worsening virus situation in Europe and more lockdowns and restrictions.

During the US session, nonfarm productivity and unit labor costs data for the third quarter will be released, but they usually don't move the markets.