European markets rebound, but Omicron fears remain – business live | Business

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The start of the week before Christmas brought on a hectic trading day yesterday, with falls in Europe and on Wall Street.

However, things look a little brighter on this dark morning on the shortest day of the year.

Asian stocks increased on Tuesday, and European equities are expected to open higher, with some buyers on the prowl for Christmas bargains, although volumes remained low just before the festive break.

The London FTSE is currently expected to open up 1.3%, with the German DAX expected to rise 1.5% at the open. It’s a similar story for pan-European Stoxx 50 futures, which are trading 1.5% higher.

Despite the muffled glee, many concerns remain about the threat of the Covid Omicron variant to the global economic recovery. The new variant, which is highly transmissible, is spreading across the world and many countries are considering new restrictions and social distancing measures in order to contain the number of cases.

Overnight, New Zealand has announced that it is delaying the phased reopening of its international border until the end of February, when travel without quarantine will be reintroduced for New Zealand citizens and residents of Australia.

Over the past few days, the Netherlands returned to containment. Germany ruled out such a move before Christmas, but the country’s health minister warned the growing wave of infections could not be stopped.

All of this has an impact on economic sentiment.

In Germany, Europe’s largest economy, newer news shows that consumer morale is expected to dip further early next year, as Omicron clouds darken the horizon. More on this shortly …

during this time UK, the figures for public borrowing have just been published. The government borrowed a total of £ 17.4bn in November, which is somewhat above the average forecast of £ 16bn.

The data comes as Chancellor Rishi Sunak faces growing calls for help from businesses – especially struggling hospitality and leisure establishments – which have seen the trade decimated as fearful customers stayed at home. them.

According to Bethany Beckett, British economist at Capital Economics, the figures for November

“Will be bad news for the Chancellor, who again faces the prospect of tighter COVID-19 restrictions and renewed government support for affected sectors. “