Peter Nurse 

Investing.com – European stock markets are expected to open higher Wednesday, continuing the global rally after Fed Chairman Jerome Powell indicated confidence in the U.S. economic recovery but didn’t point to an accelerated path towards policy normalization.

2.30 AM ET (0700 GMT), Germany’s contract traded 0.3% higher while France rose 0.7%, and Britain saw a 0.6% increase.

On Tuesday, the main equity indices were higher, led by tech-heavy indices. This positive mood was mirrored in Asia overnight. 

Powell said that even with the Covid-19 increase, the U.S. economy can handle tighter monetary policies. However, he did not make an announcement to speed up the change from the one already announced, in order to relieve markets.

On Wednesday, a new sentiment test will take place with the release the December report. This is likely to be hot as it climbs to 7% for the year.

Germany reports a record-breaking daily number of Covid-19 patients on Tuesday in Europe. This shows that Omicron is still thriving across the continent.

The World Health Organisation stated that more than half the European population could be infected with the new variant within the next 2 months, if current infection rates continue.

According to corporate news, Philips (AS) a Dutch technology company that specializes in health and medical services, said its core profit for the fourth quarter would fall by 40%. This is due to an international shortage of electronic components as well as the effects of a recall of many ventilators.

Just Eat Takeaway (AS): Europe’s biggest meals delivery service, announced fourth quarter order growth of 14% and maintained financial projections for 2022.

The sharp gains made in Wednesday’s session drove benchmark contracts to the highest levels since November, when the Omicron variant was introduced. Oil prices settled on Wednesday. Powell’s testimony also gave the market a boost.

The American Petroleum Institute’s supply data suggested that caution might be justified. Although crude oil fell by 1 million barrels last Wednesday, it rose by an impressive 10.9million barrels. This suggests that the Omicron virus may have an impact on U.S. drivers.

Investors will now be waiting for the official crude-oil supply data later today.

At 2:05 AM ET futures had traded flat at $81.22/barrel, with the contract falling 0.1%, to $83.60. The previous session saw both contracts rise by 3.5%.

Also, the price of gold rose 0.1% at $1,819.15/oz while it was largely stable at 1.1365.