Stock market sentiment has been up since Wall Street closed sharply lower last night following the discovery of the first Omicron case in California.
After gaining 1.6% yesterday during its best session in four months, the FTSE 100 index is set to fall back today.
Brent crude remains below $70 ahead of today’s meeting of OPEC and its allies, where producers may decide to move their plans out of fear that the variant could affect demand.
O’Micron’s Case in California Hurts Wall Street Trading
This week’s yo-yo performance by financial markets looks set to continue amid expectations the FTSE 100 index will drop 70 points from last night’s 109 point gain.
Yesterday’s gains were broad on hopes that the Omicron version of Covid-19 will not be as bad as feared at the time of Friday’s stock market crash. Big risers in London included British Airways owner IAG after shares rose 3%.
The FTSE 100 index had its best session since July, up 1.6%, but that was before US markets weakened on the discovery of the first Omicron case in California.
The Dow Jones Industrial Average and the S&P 500 closed down more than 1% to set the tone for a negative start to trading in London.
Michael Hewson, Chief Market Analyst, CMC Markets, said: “The sentiment has improved significantly over the past few days.
“While it is universally accepted that cases of the Omicron variant are likely to spread, it certainly cannot come as much of a surprise to anyone that cases will soon begin to be reported in the US.”
OPEC ministers are meeting later, with the cartel and its allies to decide whether to release more oil into the market than they had previously planned or supply in light of concerns over the economic impact of the Omicron version. have to stop.
Brent crude futures have fallen more than $10 a barrel over the past week, but they edged up slightly to $69.72 ahead of today’s meeting.