LONDON: European equities advanced Monday on hopes that the Omicron coronavirus variant might not be as damaging as initially feared, traders said. Oil rebounded after crude giant Saudi Aramco lifted the prices it charges Asian and US customers, in a sign of confidence in the Covid-sapped energy demand outlook.
London equities gained 0.8 percent in late morning deals, despite this week’s reintroduction of tighter UK air travel curbs due to Omicron. Frankfurt won 0.3 percent and Paris added 0.7 percent in afternoon eurozone trade.
“The (UK) travel industry may have been buffeted by yet another chill wind of more testing requirements, but airlines and hotel groups are riding higher amid hopes the new Omicron variant may not provoke more serious illness,” said Hargreaves Lansdown analyst Susannah Streeter.
Global stocks had sunk Friday on weak US payrolls data — and heightened Covid concerns that continue to linger. Asia faced a mixed performance on Monday, but was also roiled by struggling Chinese tech firms.
“Markets remain beset by uncertainty as the spread of the Omicron variant threatens to derail the general economic recovery,” said Richard Hunter, head of markets at Interactive Investor.
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