Stock markets traded in positive territory in Europe today, paving the way for a firmer open in the US after the discovery of the new Omicron coronavirus variant triggered a sharp sell-off at the end of last week.
Europe’s Stoxx 600 rose 1.1 per cent in early dealings, recovering from a fall of more than 3.5 per cent on Friday. London’s FTSE 100, Germany’s Dax and France’s Cac 40 all increased about 1 per cent. Futures tracking the US S&P 500 index added 0.9 per cent after the US benchmark fell 2.3 per cent on Friday.
There was less optimism in Asia where a broad gauge of markets in the region ended the first trading session of the week down about 1 per cent. Japan’s Topix fell 1.8 per cent, while Hong Kong’s Hang Seng and South Korea’s Kospi each fell about 0.9 per cent.
Brent crude, the international oil benchmark, however, rose 4 per cent to $75.59 a barrel, having lost more than 10 per cent on Friday in its largest fall since April 2020.
The yield on the US benchmark 10-year Treasury note, which moves inversely to its price, gained 0.05 percentage points to about 1.54 per cent after falling the most since March 2020 on Friday.
But uncertainty surrounds the new variant that was first discovered in southern Africa earlier this month.
The World Health Organization said yesterday Omicron’s impact was not yet known and added there was “substantial uncertainty” regarding its ability to transmit and potential to pierce through natural and vaccine immunity. On Friday it labelled Omicron a “variant of concern”.
Analysts at Moody’s Analytics said it would be “at least two more weeks before more will be known as scientists around the world build a better understanding of the new variant and as the severity of infections becomes clearer”.
Are you changing travel or work plans because of the new strain? Email me at firstft@ft.com. Thanks for reading and here is the rest of the day’s news.
Five more stories in the news
1. Half of this year’s big IPOs are under water Half of the companies that raised more than $1bn at initial public offerings this year are trading below their listing price. Their weak performance has raised questions about the valuations pinned to companies by large investors such as SoftBank and Warburg Pincus and leading underwriters including Goldman Sachs and Morgan Stanley.
2. Macau casino stocks tumble Shares in Macau’s biggest listed casino groups fell sharply today and Suncity Group, the Chinese gambling hub’s biggest junket operator, suspended trading following the arrest of its chief executive at the weekend.
Go deeper: The reputation of Macau as a classy playground for the Asian middle class is under increasing scrutiny from Xi Jinping’s government in Beijing.
3. Nissan seeks to dominate EVs The Japanese carmaker has announced a ¥2tn ($17.7bn) vehicle electrification plan in a bid to assert its dominance over incumbent global automakers and newcomers such as Tesla.
4. Brussels urged to regulate Big Tech EU competition chief Margrethe Vestager has urged the approval of rules to curb the power of Big Tech, even if they are imperfect. “It’s important that everyone realises that it is best to get 80 per cent now than 100 per cent never,” she said.
5. Virgil Abloh dies of cancer The American designer known for bringing streetwear into luxury fashion and a rising star within the LVMH group has died of cancer at the age of 41, the company said yesterday.
Coronavirus digest
Japan is to ban foreign visitors following the emergence of the Omicron variant, in one of the strongest responses to the new coronavirus strain from a large country.
Six cases of the Omicron variant have been discovered in Scotland today, bringing the UK total to 9.
Governments around the world are scrambling to curb the spread of the Omicron variant which first emerged in southern Africa earlier this month.
Drugmakers in the US and UK are racing to find out more about the new variant.
Explainer: Here is what we know so far about the new variant that has sparked global alarm.
Is Omicron different for markets? Robert Armstrong assesses the impact of the new strain on the outlook for global financial markets in the latest edition of the Unhedged newsletter.
The day ahead
G7 health ministers hold emergency meeting The UK will chair an emergency meeting of health ministers of the world’s richest economies to discuss the latest developments in the response to the Omicron variant. Our live blog will keep you updated throughout the day.
Ghislaine Maxwell trial begins Opening arguments begin in the highly anticipated trial of British socialite Ghislaine Maxwell in New York. The former girlfriend of Jeffrey Epstein is accused of grooming underage girls for sex. Maxwell, 59, has repeatedly denied the charges.
Cyber Monday In the lead-up to Christmas, online retailers hold special promotions and prepare for a deluge of orders after a busy Black Friday.
Iran nuclear talks resume in Vienna Talks are set to resume between Iran and global powers in Vienna, Austria on reviving the nuclear accord abandoned by former US president Donald Trump. The talks take place following a five-month hiatus to allow for elections in Iran.
What else we’re reading and watching
America’s abortion battle returns to the Supreme Court The pink-walled Jackson Women’s Health Organization has become the focal point of a legal battle that could overturn Roe vs Wade, the landmark decision to legalise abortion in the US, in a critical test that will come before the Supreme Court this week.
Is Turkey on the brink of hyperinflation? Turks have been watching with horror as the lira has tumbled since early November, while inflation surged. If President Erdogan refuses to abandon his fixation with low-interest rates, Turkey could be headed towards hyperinflation, analysts warn.
Video: NFT sales redraw the art market The art world is grappling with a new frontier, where ownership of digital assets is encrypted on the blockchain. The FT talks to artists, auction houses and collectors about how NFTs have opened up opportunities for creators — and speculators.
How to spot the chancers who are ‘winging it’ at work We’ve all been at meetings, watched panels or seen speeches where participants are bluffing, writes Emma Jacobs. Some (many?) of us may even have been the bluffers, she says.
Why the rich fall for the cult of wellness Nearly two years into a pandemic in which medical science has largely saved the day, you may think that interest in the “wellness” trend would be waning. Not a bit of it. Pseudoscience is mixed up with enough real science to make anything believable, says Rymer Rigby.
Food & drink
Heavens, we need cheer and conviviality — and what’s more cheering than a convivial glass of fizz? Wine critic Jancis Robinson reveals some of her best bubbly for the winter, from a £10 Crémant to a memorable Krug.
Source: Economy - ft.com
