World stocks fizz as Omicron fears fizzle

World stocks fizz as Omicron fears fizzle

NEW YORK: Global stock markets rallied yesterday on fading fears over dangers arising from the new Omicron COVID variant. London stocks won 1.2 percent in late morning deals, while Frankfurt and Paris fizzed more than two percent higher at midday in the eurozone. The dollar trod higher, while oil extended gains on dimming energy demand concerns. Asian equities climbed despite renewed worries over potential debt defaults in China’s troubled property sector.

‘Less damaging than feared’

“Markets flushed out at the first sign of Omicron, but now are more confident it won’t be as bad as first feared,” said Markets.com analyst Neil Wilson. “Risk appetite is improving as evidence incrementally supports the case that the Omicron variant will be less damaging to the economy than was supposed at the end of November.”

World stocks and oil had tanked on November 26 when news of the new variant first flashed across traders’ screens. After a rollercoaster ride since then, investors are now optimistic over the outlook in the run-up to Christmas. “European markets are continuing their upward trajectory, with traders feeling increasingly confidence that the Omicron variant will not ruin Christmas,” added IG analyst Joshua Mahony.

Omicron has been detected across the globe but no deaths