Global markets rebound after Omicron turmoil

Global markets rebound after Omicron turmoil

LONDON: Global stock markets rebounded yesterday and oil prices surged following Omicron-driven losses and on the eve of a key output meeting of OPEC and its allies. European equities advanced, mirroring most rebounding Asian bourses, as dealers temporarily set aside news of record-high eurozone inflation. Oil surged about five percent, while the dollar extended gains against major rivals as the Federal Reserve is seen removing its vast financial support measures at a quicker pace than first flagged.

Rollercoaster ride

Investors were facing a rollercoaster week as they track the mutant Omicron strain, whose emergence last Friday darkened the economic outlook, sparked fresh COVID restrictions and ravaged most markets. Traders remain uncertain over its impact on the world economy and the likelihood of fresh lockdowns, as scientists rush to investigate the variant and urge speedy vaccination drives.

“An ugly combination of a COVID-related knock to growth, reduction in central bank support and sustained inflation is not a recipe for strong stock markets,” said AJ Bell investment director Russ Mould. “However, some traders appear to have decided the weakness has gone far enough for now as they emerged to bid up stocks and oil.” OPEC and the oil cartel’s allies hold a key output meeting