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The reaction in the European markets with mixed signs is ‘deflating’


The main European stock markets are moving away from the highs of the day and with mixed signs, with the climate of caution being maintained in the markets due to the concerns about the spread of the new Homicron mutation of the virus and its possible impact on the 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 remains almost unchanged at 473 points, while it was found to gain up to 0.6% in the morning trading trying to break the negative series of 4 bearish sessions. The core resource sector is climbing 1.4% and is leading the profits. The biggest losses are recorded by the media and travel and leisure sector, with a drop of 0.5% each.

In the individual dashboard, the German DAX loses 0.1% to 15,600 points, the French CAC 40 falls by 0.07% to 6,940 points and the British FTSE 100 climbs 0.36% to 7,260 points.

On the periphery, the Italian FTSE MIB gains 0.38% at 26,650 points and o IBEX 35 increased by 0.65% to 8,380 points.

In the individual movements of the shares, Vifor Pharma marks a “jump” of more than 12% in the aftermath of the offer of the Australian biopharmaceutical giant CSL for the acquisition of the Swiss company for 11.7 billion dollars.

The British BT Group, on the other hand, slipped 5.7% after Altice UK, the telecommunications investment firm controlled by French billionaire Patrick Drachi, increased its stake in the company by 12.1% to 18%.

In macro of the day, in estimates for the growth of the German economy in 2022 by 1.4% the German Ifo institute, and upgraded it by 1.4% for 2023. Following the revision of the estimates, Ifo predicts that German GDP will grow by 3.7% next year and 2.9% in 2023, after growth of 2.5% in 2021.

In addition, 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.

As for industrial production in the Eurozone, that increased in October after two consecutive months of decline, due to delays in deliveries attributed to global pressures on the supply chain. Production of factories, mines and utilities across the region increased by 1.1% in October compared to September, according to Eurostat.


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