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European markets optimistic that omicron variant won’t derail recovery

LONDON — European stocks are expected to open higher on Tuesday amid cautious optimism that the omicron Covid variant might not derail the global economic recovery, as initially feared.

United Kingdom’s FTSEindex opens at 7.148 points, Germany’s highest point. Index is 31 points higher. DAX 71 points higher at 15,348, France’s CAC 40 up 23 points at 6,799 and Italy’s FTSE MIBAccording to data from IG, it was 87 points more at 26,108

European markets have seen a start that is positive amid hope that the omicron Covid variant won’t cause economic disruption like initially thought.

European and U.S. stocks rose on Monday following last Friday’s sell-off as concerns over the newly discovered omicron Covid variant appeared to ease.

Stocks rose after the US President Joe Biden stated that economic lockdowns as a response to the Omicron variant of the virus are not currently possible and that there won’t be any new travel restrictions.

As a result of the omicron-related covid symptoms, they have been described. “extremely mild” by the South African doctor who first spotted the new strain. However, Monday’s warning by the World Health Organization stated that this omicron strain is highly likely to spread worldwide and presents a risk of “very high” mortality.

Continue reading: Covid omicron variant poses ‘very high’ global risk and is likely to spread, WHO warns

U.S. stock futures climbed in overnight tradingWhile Monday is Asia-Pacific markets were more cautiousTrading was mixed overnight as investors reviewed the potential risks of the new version.

The data released Tuesday revealed that China’s factory activity increased unexpectedly in November. This was in addition to China’s official manufacturing Purchasing Managers’ Index for November coming in at 50.1. Analysts had expected a reading of 49.6. This was higher than the Reuters poll. PMI readings lower than 50 indicate contraction, while higher levels signify expansion. 

Investors in the States are anticipating important economic data, such as Friday’s November jobs report. It is anticipated that this report will show robust job growth. Dow Jones polled economists and predicted that 581,000 new jobs would have been created in November.

On Tuesday, Easyjet, Greencore and SAS reported earnings. Data releases also included flash inflation data from the euro zone in December, France’s third quarter gross domestic product data, as well as German unemployment figures.

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— CNBC’s Eustance Huang contributed to this market report.

Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.