Omicron Fears and European Markets’ Slow Start

Concerns over the Omicron COVID version Should keep European equities down on Thursday. According to IG data, the UK’s FTSE index should start 80 points lower at 7,086. Germany’s DAX should open 176 points lower at 15,295. France’s CAC 40 should open 91 points lower at 6,797. Italy’s FTSE MIB should begin 326 points lower at 26,026. 

Despite anxieties about the new model and the Federal Reserve considering a faster-than-planned taper, major markets in Asia and the United States rallied back on Wednesday. On the other hand, global markets seem to be trying to recoup pace amid continued uncertainty about the hazards presented by the new Omicron COVID form. The new variant was first discovered in South Africa last week. The strain was recognized by the World Health Organization as a “variant of concern.”

Nation’s Concern over Omicron

According to the WHO, at least 23 countries from five of the six WHO regions have already reported instances of Omicron, “and we expect that number to rise.”

It also noted that hospitalizations are on the rise in South Africa. However, it is too early to say if the Omicron form is to blame for increasing severe COVID-19 cases.

The CDC confirmed the first known case of the Omicron strain in the United States, sending stock prices plunging. Asia-Pacific stock markets remained flat on Thursday, with US stock index futures edging higher overnight. Northern California was the first place where the heavily modified version first appeared.

The eurozone unemployment rate for October and producer prices for the same month are among the data releases. There are no significant earnings on Thursday. The anticipations are that international markets will experience further fluctuations, as no major details regarding the Omicron variant have been verified. According to the WHO, further investigations are needed for any confirmation.