EM – LONDON MARKET EARLY CALL: Stocks rebound after Omicron sell-off

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( Alliance News) – London stock prices are expected to make up for some of the heavy losses from Friday early Monday as markets continue to grapple with a disturbing new variant of the coronavirus.

IG says futures show the FTSE 100 index of large caps will open 77.87 points, or 1.1%, at 7,121.90 on Monday. The FTSE 100 closed 266.34 points, or 3.6%, at 7,044.03 on Friday.

Global equity markets fell on Friday, and Asia extended losses into the new week after a new Covid-19 The strain now known as Omicron cast doubt on global efforts to fight the pandemic, fearing it was highly contagious and could potentially bypass vaccines.

Several countries have announced plans to restrict travel from southern Africa, where it was first discovered, including the important travel hub of Qatar, the US, UK, Saudi Arabia, Kuwait and the Netherlands.

But the The virus strain has already slipped through the web and has now been found everywhere from the Netherlands to Hong Kong. In Australia, authorities said on Sunday that they first discovered it in two passengers from southern Africa who were tested after flying to Sydney become mandatory in public transport, as well as in shops and other establishments, including banks, post offices and hairdressers. The isolation rules will then return for international comers as well until they get a negative PCR test for Covid-19.

Despite the reintroduction of the rules, UK Health Secretary Sajid Javid told families they should have a great Christmas “as usual” and insisted that it was “still a long way” to reintroduce rules for social distancing and home work instructions.

Some hopes raised comments from a South African doctor who spoke about Omicron’s alarm hit. She said dozens of her suspected new variant patients had only mild symptoms and made full recovery without hospitalization.

“This could explain why markets in Europe are waiting for a recovery this morning” said Michael Hewson, chief market analyst at CMC Markets.

“We certainly can’t say it wasn’t overdue given the way markets did this year, and as governments once again looked for the travel bans and restrictions playbook grab we could see renewed pressures on companies like the travel and leisure hospitality sector, and perhaps that explains why the markets have reacted this way. “

The pound sterling was up at $ 1.3337 earlier Monday than USD 1.3322 at Friday’s London stock close, the euro was trading at USD 1.1283 early Monday, lower than late Friday at USD 1.1315.

In a half-day meeting on Fri. Wall Street plunged on Monday, with the Dow Jones Industrial Average down 2.5%, the S&P 500 down 2.3% and the Nasdaq Composite down 2.2%.

The gloomy mood continued in Asia on Monday with the Nikkei 225 index falling 1.6% in Tokyo. Japan will restore strict border measures and exclude all new foreign arrivals because of the Omicron-Covid variant, Prime Minister Fumio Kishida announced on Monday, just a few weeks after the strict entry requirements were relaxed.

In China, the Shanghai Composite lost 0.3 %, while the Hang Seng Index in Hong Kong lost 1.2%. The Sydney S&P / ASX 200 closed 0.5%.

Oil prices rebounded marginally after being pounded last week over concerns that the new variant could trigger global lockdowns and depress fuel demand. Brent oil traded at $ 75.53 a barrel early Monday, up from $ 73.54 late Friday.

Gold as a safe haven slumped. Gold was trading at $ 1,795.17 an ounce early Monday, down from $ 1,799.30 on Friday.

Monday’s economic calendar shows Eurozone consumer confidence at 1000 GMT and German inflation at 1330 GMT.

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