European Stocks Return – Calm after the Omicron Storm
European stocks return – calm after the Omicron storm – European stocks resumed on Tuesday. This is against the backdrop of when Omicron infections threaten the economy; Which is already battling high inflation rates and lessening the prospect of central bank support. The Stoxx 600 index rose 1 percent in early trading; This is after closing lower by 1.4 percent on Monday. The FTSE 100, Dax, and Cac 40 were up about 1 percent.
In Asia, the Hang Seng rose 1.1 percent. The Nikkei 225 also rose 2.1 percent. Oil prices remained unchanged after the decline in the previous trading session. Brent rose to $71.79 a barrel on Tuesday, up 0.4 percent. West Texas Intermediate was down $69.09, up 0.7 percent overall.
Statements by vaccine manufacturers and regulators on Monday prompted investors to be cautious. In addition to the loss of life, the spread of the high mutation variant is likely to increase inflationary pressures by exacerbating existing supply chain issues. However, if governments re-impose a nationwide shutdown, it would be a decisive blow.
Major central banks took a more aggressive stance against rising inflation last week. According to experts, banks now have more room for maneuver. However, most economists expect policymakers to continue to reverse the crisis-era measures, despite the new option.
Omicron and European Politics
Countries, including France and Germany, have tightened travel restrictions. The Prime Minister of the United Kingdom has decided to introduce only Christmas restrictions. Although on Monday, he announced the scale of the situation.
Meanwhile, S&P 500 futures rose 0.9 percent after falling 1.1 percent on the Wall Street benchmark on Monday. The Omicron is currently assertive in the U.S. According to the Centers for Disease Control and Prevention, there has been a dramatic increase in cases.
Recovery and UK Stocks
Rallies resumed in the U.K. on Tuesday as well. An increase followed this in travel and commodity promotions. However, fears about the growing incidence of the Omicron COVID-19 variant continued over the Christmas holidays as well. The FTSE 100 index gained 1.0%, while the FTMC index improved by 0.9%.
Royal Dutch Shell and B.P. added almost 1.4% to the price of each crude oil. Manufacturers of industrial metal gained 2.6%. This helped push up copper prices due to the weaker dollar. The U.K. plans to tighten COVID-19 restrictions if the situation worsens. The Netherlands started the fourth lock. Other European governments are planning Christmas restrictions.
The travel and leisure sector grew by 1% after falling 0.7% in the previous session. Schroders plc rose 1.2% after announcing it had agreed to buy a 75% stake in Greencoat Capital Holdings Limited for 358 million.
Tokyo Stocks
The profit of the blue chips made the market even more vital. On the Tokyo Stock Exchange, the broad Topix index of all first section issues ended with 1969.79 with 28.46 points. Tokyo shares rose sharply in early trading. The rise continued at the end of the day after Monday’s Nikkei index ended below the 28,000 thresholds.
Due to widespread Omicron option concerns, the Nikkei index has fallen nearly 4 percent over the previous two trading sessions. Experts say Japanese stocks have sold far more than they should have. There was an impression among investors that it had gone too far.
Brokers said investor sentiment was supported by U.S. stock futures and some Asian markets. And shares of the blue-chip were bought after falling sharply on Monday and last week. Tokyo Electron – increased by 4.4 percent. Advantest gained 4.6 percent. Taiyo Yuden rose 3.0 percent. Shionogi rose 5.3 percent.
