Reaction to the European markets to ‘break’ the 4-day negative streak

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Major European stock markets are moving higher on Tuesday, despite the cautious climate in the markets due to concerns about the spread of the new Omicron mutation and its possible impact on economies.

On Monday The United Kingdom has confirmed that at least one patient with the new mutation has died., with Britain ‘s Plan B measures to tackle the spread of Covid-19 are now vital to protecting humans.

The House of Commons will vote today to approve the measures, which include the strong recommendation for distance work, the use of a mask in public places and the use of health certificates in certain areas. At the same time, the travel industry is weighing in on the risk of tougher travel restrictions due to the Omicron mutation.

Investors, meanwhile, are looking at meetings of the Federal Reserve, the Bank of Japan, the Bank of England and the European Central Bank, where they are expected to announce their monetary policy decisions.

The two-day meeting of the US Federal Reserve starts today in the shadow of the data announced on Friday, which showed that inflation jumped to a high of 39 years in the US in November, reaching 6.8%. Analysts are now waiting for the Fed to announce on Wednesday the fastest contraction of bond markets in the quantitative easing program launched in the wake of the coronavirus crisis. With the completion of the program in 2022, the central bank is expected to start raising interest rates at the end of the first half of the year or even earlier to deal with high inflation.

In this climate, the pan-European Stoxx 600 tries to break the 4-day negative streak, recording a rise of 0.56% to 476 points, with the core resources sector climbing by 1.1% and leading the profits.

In the individual dashboard, the German DAX strengthened by 0.4% to 15,690 points, the French CAC 40 adds 0.66% to 6,990 points and the British FTSE 100 climbs 0.71% to 7,280 points.

On the periphery, the Italian FTSE MIB gains 0.71% at 8,375 points and o IBEX 35 increased by 0.66% to 8,377 points.

In macro of the day, The number of people employed in the United Kingdom increased in November, despite the end of the government’s job support program in late September. In particular, the staff in the salaries of the companies increased by 257,000 in November from the previous month, to 29.4 million according to the data of the statistical service. Unemployment fell to 4.2% from 4.3% in the three months to October, according to economists.


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