European Stocks May Open Higher

Despite rising concerns about a new coronavirus variant, Omicron, European stocks are likely to open higher on Monday, as traders are likely to go in for some bargain hunting after the terrible tumble in the previous session.

However, virus concerns might limit markets‘ upside. The World Health Organization, which held an emergency meeting on Friday, declared the new virus variant a matter of concern, noting its transmissibility.

The new variant has been red-flagged by scientists over an alarmingly high number of spike mutations that might make the virus more resistant to vaccines.

Meannbile, Moderna’s Chief Medical Officer Paul Burton said Sunday the vaccine maker could roll out a reformulated vaccine against the omicron variant early next year.

Oil’s rebound from recent hefty losses is likely to trigger some strong buying in the energy sector. Travel-related stocks may see a choppy ride. Although some buying is likely after the sharp decline in the previous session, the sector may find the going a bit tough due to likelihood of stricter restrictions on travel.

Investors will be reacting to a slew of economic data, including a report on consumer prices in Germany.

At 2.00 am ET, foreign trade and economic confidence reports are due from Turkey. At 3.00 am ET, Spain’s INE publishes flash consumer prices for November. Hungary’s unemployment data is also due at 3.00 am ET.

Statistics Sweden is scheduled to issue revised quarterly national accounts and foreign trade data at 3.30 am ET. At 4.00 am ET, producer price figures are due from Italy.

The Bank of England is scheduled to release mortgage approvals data for October at 4.30 am ET.

At 5.00 am ET, Eurozone economic confidence survey results are due. The economic sentiment index is forecast to fall to 117.5 in November from 118.6 a month ago.

At 8.00 am ET, Destatis is slated to issue Germany’s flash consumer prices for November. Economists expect inflation to rise to 5% from 4.5% in October.

European stocks plunged sharply on Friday following a heavy sell-off on reports about detection of a new and possibly vaccine-resistant coronavirus variant in South Africa.

On Friday, the pan European Stoxx 600 tumbled 3.67%. The U.K.’s FTSE 100 plummeted 3.64%, Germany’s DAX slid 4.15% and France’s CAC 40 tanked 4.75%, while Switzerland’s SMI declined 2.01%.

On Wall Street, the major averages all finished sharply lower on Friday. The Dow tumbled 905.04 points or 2.5% to 34,899.34, the Nasdaq slumped 353.57 points or 2.2% to 15,491.66 and the S&P 500 sank 106.84 points or 2.3% to 4,594.63.

Asian stocks are lower on Monday, tracking negative cues from Wall Street where stocks plunged on Friday as worries about the global economy due to resurgence of coronavirus cases in Europe and the detection of a new and possibly vaccine-resistant virus variant in South Africa hit global risk sentiment. Countries have also begun to close borders to flights from African nations.

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