European stock markets rebound despite Omicron COVID variant fears
Posted On November 29, 2021
European stock markets rebounded on Monday, climbing higher after Friday’s rout, as investors continued to closely assess the threat of a new COVID-19 variant.
In London, the FTSE 100 (^FTSE) rose 0.9% after opening, while the CAC (^FCHI) surged 1.3% and the DAX (^GDAXI) was 1.2% higher.
Over the weekend, three cases of the Omicron coronavirus strain, which was first detected in South Africa, were found in England, with another six cases reported in Scotland on Monday morning. So far the new variant has already been located in 14 countries.
The B.1.1529 strain is said to contain up to 30 identified mutations, which prompted officials from the World Health Organization (WHO) to call an emergency meeting to discuss what it means for vaccine efficacy as well as other treatments.
“We’ve always known that new variants could well be a problem, and yet over the past 12 months there have been many reports of possible candidates that might be a concern that have come and gone without getting the sort of market reaction we saw on Friday,” Michael Hewson of CMC Markets said.
“It’s also not that clear this newly renamed Omicron variant is any more deadly than the current more prevalent Delta variant, which for the most part is still causing its own fair share of problems in Europe as it is, having replaced Alpha earlier this year, without the same sort of market reaction.”