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Global markets showed signs of stabilization on Monday as investors took a deep breath and looked more carefully at the known and unknown of a new Covid-19 variant.
Stocks on Wall Street and Europe fell a lot on friday On the first news of the discovery of a new variant called Omicron in South Africa. The World Health Organization labeled it “”.anxiety variant”, the most serious category. Shares of companies in industries that have recovered in recent months, such as airlines and other travel firms, have been hit hard as governments begin to set limits on cross-border movement. Oil prices and bond yields fell, signaling investors to flee to safe havens for their money.
On Monday, with quick responses from Omicron about the hard-to-come threat, investors began to consider possibilities other than disaster. While it may turn out to be a new variant more infectious and vaccine resistant, makes some sense, it could also be prove to be less dangerous to the health of the vaccinated or previously infected person.
With that in mind, stocks in Europe opened slightly positive early Monday, with markets in London, Paris and Frankfurt up less than 1 percent.
Futures markets had predicted Wall Street would also open higher later on Monday.
In another sign of improving market sentiment, oil prices rose in the early hours of the European trading day. The two main benchmarks, Brent crude and West Texas Intermediate, were up 4 to 5 percent.
European markets may have taken a cue from Asia-Pacific stocks, which dropped massively on Monday but didn’t fall as much as other stocks on Friday. In Japan, the Nikkei 225 Index fell 1.6 percent in a single day from the government. closed the country’s borders just a few days after opening to short-term business travelers and international students.
However, stocks in Shanghai were flat and the Hong Kong market closed the day down less than 1%. Other markets in the region also fell more moderately than global markets on Friday.
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