Reaction after the ‘deep red’ in the European markets with profits close to 1%

LAST UPDATE: 12.50

European stock markets are moving in positive territory at the beginning of the week, coming out of the “deep red” on Friday when they recorded heavy losses that exceeded 3.5%, despite the climate of concern caused by the new Omicron mutation of the coronavirus threatening its dynamics. economic recovery.

The new strain has already been identified in the United Kingdom, Israel, Belgium, the Netherlands, Germany, Italy, Australia and Hong Kong, but not yet in the United States. Many countries around the world, including the United States, have imposed restrictions. on trips from South Africa. Japan and Israel are closing their borders to foreign travelers as a whole, in a bid to stem the spread of the new executive.

Companies that make covid-19 vaccines have announced that research is under way into the resistance of the new mutation in their formulations to see if new vaccine recommendations are needed. Moderna chief medical officer Paul Burton said Sunday that the company could release a “remodeled” vaccine against the Omicron mutation early next year.

The World Health Organization has described Omicron as a “variant of concern.”, while preliminary data on the new executive suggest that with Omicron there is “increased risk of re-infection”. However, the WHO said in a statement on Sunday that it was still unclear whether the Omicron mutation was causing a more serious illness than other mutations, including Delta.

In this climate, the pan-European index Stoxx 600 notes gains of 0.9% to 468 points, with the travel and leisure sector leaving behind the dip of more than 8% on Friday and leading today in profits with a rise of 2.5%.

On the individual dashboard, the German DAX increased by 0.55% to 15,340 points, o CAC 40 adds 1.05% to 6,810 points and the British FTSE 100 gains 1.02% to 7,120 points.

In the periphery, the Italian index FTSE MIB climbs by 0.86% to 26,075 points and the Spaniard IBEX 35 increased by 0.93% to 8,480 points.

In the individual shares BT is up 9% after a report said that the Indian oil-telecommunications group Reliance is considering bidding for the British company.

On the other hand, the French car parts group Faurecia is down 5.8% after revising down its forecast for the year.

In macro of the day, The economic climate in the Eurozone deteriorated in November, respectively, as consumers became less optimistic and cut inflation expectations, although forecasts for sales prices in manufacturing hit a record high. The Commission’s economic climate index fell to 117.5 points in November from 118.6 points in October.

In addition, supply chain problems affecting German industry intensified in November, with 74.4% of companies complaining about problems in the supply of inputs and raw materials, an increase of 4% since October. As the director of the German Ifo Institute, Klaus Wohlrabe, warned, these problems will affect prices.

Meanwhile, oil prices are recovering today, offsetting some of the losses after Friday’s slump of -13% with traders worried that the new mutation could derail the global economic recovery, hurting oil demand.

So, after the worst day for the oil market since April 2020 on Friday, today the West Texas Intermediate adds $ 3.30 or 4.84% to $ 71.45 a barrel and Brent oil moves up $ 3.11 or 4.3% to $ 75.83 a barrel.

In Asia, stock markets continue to decline on Monday, after the heavy losses recorded on Friday. THE travel industry is hit in today’s trading, with Japan Airlines “diving” 3.84%, while ANA Holdings falls by 3.66%. Qantas Airways in Australia lost 1.7%, while the share of Cathay Pacific in Hong Kong fell 2.96%. At the same wavelength, Singapore Airlines slipped by 2.18%.