European markets go toward mixed open
On Tuesday, investors expect European stocks to open in mixed territory as investors consider new additions relating to the new omicron strain.
According to data from IG, the FTSE index in the U.K. will open 10 points lower at 7,231. Furthermore, DAX in Germany rose 32 points higher at 15,427, and CAC in France 40 up 10 points at 6,887, and FTSE MIB in Italy 138 points higher at 26,584.
The more moderate start for European stocks appears after the region moved higher this Monday as investors keep monitoring developments regarding the new coronavirus omicron strain.
Overview on the matter
On Sunday, Dr. Anthony Fauci, White House Chief Medical Advisor, said that the initial data regarding the new Covid variant seemed hopeful. However, he warned that they should wait to get more information needed to understand this fully.
On Tuesday, stocks across Asia-Pacific dropped, bouncing back from their Monday losses as Wall Street surged on optimism that the new omicron strain risks might not be as severe as anticipated. Moreover, U.S. stock futures remained flat after a rebound this Monday in overnight trading.
In the meantime, investors are also considering the possibility of the U.S. Federal Reserve hiking rates sooner than anticipated and withdrawing its pandemic easing policies.
Fed officials commented on this event, suggesting that the central bank might possibly decide to double its taper’s pace to $35 billion a month at its meeting scheduled for the next week. They might also start initial discussions at this December meeting about raising interest rates. They will discuss when to raise interests rates and by how much.
Data releases cover:
- German industrial production numbers for October.
- Dutch inflation numbers for November.
- Switzerland’s unemployment rate for November
- French trade data for October.
There are no significant earnings for this Tuesday.