Even with extensive concerns mounting over the new Covid variant omicron, European stocks will expectedly start high in the new trading week.
According to data from IG,
- The FTSE index of the UK is opening at 7,137, 97 points higher
- DAX of Germany at 15,437, 191 points up
- CAC 40 of France at 6,824, 99 points higher
- FTSE MIB of Italy at 26,167, up by 324 points
European markets are all set to open big regardless of the pressing concerns related to the omicron variant, which WHO labeled as the “variant of concern” by last Friday.
Omicron has a large number of mutations, raising concerns as scientists continue to research it. Preliminary evidence also suggests that the strain has an increased reinfection risk.
So far, the variant was found in the UK, Israel, Belgium, the Netherlands, Australia, Hong Kong, Italy, and Germany, except for the US. Countries are now moving to restrict travel from South Africa.
Vaccine makers have released the measures to investigate omicron while the testing is underway. It is yet to be seen how omicron responds to existing vaccines and if new formulations are required. Chief Medical Officer of Moderna, Paul Burton, said that they could release a redesigned vaccine for the new variant next year.
Following Friday’s sell-off, US stock futures rose overnight, trading Sunday. Investors look at key economic data that is to be released this week. According to the Economists survey by Dow Jones, the November jobs report is expected to show solid jobs growth, with 581,000 jobs to be added in November.
WHO announcement last Friday was followed by shares in Asia-pacific largely falling in Monday trade with markets struggling to regain confidence. Nikkei 225 in Japan and Hang Seng index in Hong Kong fell above 2% after the news.
Oil prices were high during Asia trading hours following the drop of around 13% on Friday, its worst day of the year.
On Monday morning, International benchmark Brent crude futures gained 3.3% to $75.14 per barrel, and US crude futures went up 4.1% to $70.99 per barrel. The key data releases in Europe on Monday, including the November’s eurozone business climate and economic sentiment data and flash inflation data for Spain and Germany.