European stocks rise after sold out triggered by Omicron variant

European stocks rose on Monday after a sell-out caused by a variant of the Omicron coronavirus at the end of last week as investors settled on long-term uncertainties about the pandemic.

The STOXX 600 in Europe recovered from a fall of more than 3.5% on Friday and rose 1.1% in early trading. The FTSE 100 in London, Dax in Germany and Cac 40 in France all increased by about 1%.

Meanwhile, futures tracking the US S & P 500 index rose 0.9% after the broad US stock index fell 2.3% on Friday. Still, Asian markets were under pressure, pushing MSCI’s broad gauge of markets in this region by about 1%. Japan’s Tokyo Stock Price Index fell 1.8%, while Hong Kong’s Hang Seng Index and South Korea’s Kospi Index each fell by about 0.9%.

Brent crude, the international oil benchmark, rose 4% to $ 75.59 a barrel, the biggest drop since April 2020 on Friday, down more than 10%.

Scientists believe that Omicron is more contagious and has potential mutations than the highly infectious delta mutant. Make the vaccine resistant..

However, Barry Schueb, the chairman of the South African Vaccine Minister’s Advisory Board and the doctor who discovered the Omicron variant, said: Told Sky News On Sunday, most patients infected with this strain showed only “mild cases.”

ING’s Asia-Pacific research director, Robert Kernel, said the market remains volatile as more information about Omicron reveals how the government has reacted to new stocks. Warned.

“The latest market trends confirm that markets tend to overreact to bad news, but then unrealistically stick to the flickering hopes that allow them to recover. That’s it, “he said.

“Probably the only certainty in this environment is volatility.”

World Health Organization caution On Sunday, it was “not yet clear” whether Omicron’s severity or infectivity differed from previous strains. Moody’s Analytics analysts said, “At least two more people around the world will be known as scientists around the world better understand new variants and the severity of the infection becomes more apparent. It will take a week. “

In South Africa Variant identifiedRand rose more than 1% against the dollar to R16.08 on Monday after a sharp fall on Friday.

However Airline stock pain continuedQantas of Australia fell 6.2% in early transactions before recovery. Malaysian low-cost carrier AirAsia fell 6.7%, while Cathay Pacific in Hong Kong fell almost 5%, according to Refinitiv data.

Yields on US benchmark 10-year Treasuries, which are inversely proportional to price, rose 0.05 percentage points to about 1.54 percent after the sharpest decline since March 2020 on Friday.

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European stocks rise after sold out triggered by Omicron variant

Source link European stocks rise after sold out triggered by Omicron variant

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