Stocks and oil drop as Omicron variant ‘clouds the outlook’

Stocks and oil drop as Omicron variant ‘clouds the outlook’

Equities and oil prices dropped on mounting concerns for the global economy, as the rapid spread of the Omicron coronavirus variant prompted governments across the continent to reimpose restrictions.

The pan-Europe Stoxx 600 index fell 2.1 per cent in morning dealings. London’s FTSE 100 and France’s Cac 40 both slid by around 2 per cent, while Germany’s Dax declined 2.5 per cent. S&P 500 futures dropped 1.8 per cent, pointing to another significant pullback after Wall Street’s benchmark stock barometer shed 1 per cent on Friday.

The Netherlands on Sunday became the first EU country to re-enter a nationwide lockdown, shutting bars, restaurants and most non-essential shops until at least mid-January.

The German government tightened travel restrictions over the weekend, while the UK’s health secretary did not rule out having to bring in curbs in England before Christmas, telling the BBC it was “time to be more cautious”. Ireland, meanwhile, initiated an 8pm curfew for pubs and restaurants.

Tatjana Greil Castro, co-head of public markets at Muzinich, attributed the market slide to the higher chance of Omicron-induced lockdowns in both Europe and Asia, although she added that moves in either direction were likely to be exaggerated at this time of year because of thin