Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European Stocks Higher; Travel Stocks Gain as Omicron Risks Reassessed

Stock MarketsNov 29, 2021 09:22
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse 

Investing.com - European stock markets traded higher Monday, only partially unwinding Friday’s hefty losses, with travel stocks benefiting as investors reassess the potential economic damage the newly discovered omicron Covid variant might cause.

Fears gripped the market last week that the variant could resist vaccinations and crush the economic recovery. However, South African health experts have indicated that the symptoms from the new variant have been mild so far, while drugmaker Moderna (NASDAQ:MRNA) indicated Sunday it could roll out a reformulated vaccine early next year. 

At 4:10 AM ET (0910 GMT), the DAX in Germany traded 0.6% higher, the CAC 40 in France also rose 0.9% and the U.K.’s FTSE 100 climbed 0.9%. These indices fell around 4% on Friday.

The omicron variant is likely to spread internationally, posing a "very high" global risk where Covid-19 surges could have "severe consequences" in some areas, the World Health Organisation said on Monday.

New cases have been found in a number of countries, including the U.K., the Netherlands, Denmark and Australia, prompting more travel restrictions as countries try to isolate themselves.

IAG (LON:ICAG) stock rose 2.1%, Lufthansa (DE:LHAG) stock climbed 1.7%, while Tui (DE:TUIGn) stock rose 1.5% as the airline and travel sector rebounded from last week’s rout. Additionally BP (NYSE:BP) stock gained 2.7%, Eni (MI:ENI) stock rose 2.4% and Royal Dutch Shell (LON:RDSa) climbed 3.1% as crude oil prices rose.

Traders are now reassessing the risks to global crude demand from the new omicron variant ahead of this week’s meeting of top producers to decide production levels moving into the new year.

The Organization of Petroleum Exporting Countries and its allies, a group known as OPEC+, meets on Thursday, and is set to discuss the threat from the new variant as well as the decision of a U.S.-led coalition of major consumers to add output to the global supply from their emergency reserves.

The group had been widely expected to continue with its plan of gradually adding 400,000 barrels a day in January as demand recovers, but speculation is mounting that OPEC+ may decide this week to pause output increases.

By 4:10 AM ET, U.S. crude futures traded 5.2% higher at $71.69 a barrel, having slumped over $10 in the previous session, while the Brent contract rose 4.5% to $75.04, after falling $9.50 on Friday.

In economic news, Spanish inflation hit its highest in nearly three decades in November as increases in food and fuel costs pushed consumer prices up 5.6% year-on-year. The German equivalent data is due later in the session, and is also expected to climb to the 5% level, increasing the pressure on European Central Bank policymakers ahead of their next meeting on December 16.

Additionally, gold futures rose 0.7% to $1,800.40/oz, while EUR/USD traded 0.3% lower at 1.1279.

European Stocks Higher; Travel Stocks Gain as Omicron Risks Reassessed
 

Related Articles

Nelson Peltz’s Trian builds stake in Unilever -FT
Nelson Peltz’s Trian builds stake in Unilever -FT By Reuters - Jan 23, 2022

(Reuters) -Trian Partners, Nelson Peltz’s activist hedge fund, has built a stake in Unilever (LON:ULVR), ratcheting up the pressure on the consumer goods maker, the Financial...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Darren Murdock
Darren Murdock Nov 29, 2021 12:40
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If symptoms are mild, its best to let this variant spread. Let our natural immune system do its job. Scientists and doctors can advise everyone how to get our immune systems into best condition.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email