European equities rebounded on Monday following panic-induced selling on Friday after the discovery of a new coronavirus variant Omnicron.
The FTSE 100 rose by 0.68% to 7,089 in early trade on Monday.
The German DAX was up 0.45% at 15,325 and the French CAC 0.9% higher.
“The anxiety attack on the financial markets shows signs of alleviating, as investors pause for breath and spot signs of optimism while scientists race to establish the severity of the new variant. The FTSE 100 opened up 1% in early trading, recovering some of Friday’s dramatic losses and the FTSE 250 was 1.5% higher,” said Susannah Streeter, senior investment and markets analyst Hargreaves Lansdown.
The rebound in markets can also be attributed to comments from South African doctors around how those infected with Omicron were reacting. Early reports suggest that Omicron isn’t more severe than Delta as first feared, although it will take time to properly assess patients on a large scale.
“There are reports from doctors in South Africa that Omicron infections don’t seem more severe and the World Health Organisation’s appeal for caution also appears to have calmed some nerves. It has observed that although there appears to be increasing rates of hospitalisation, that may be due to higher numbers being infected rather than due to its specific strain,” Streeter said.
BT shares
BT shares shot up over 8% on reports the telecoms company has got the attention of India’s Reliance Industries., who were contemplating an offer. The interest in BT comes shortly after a Private Equity approach for Telecom Italia suggesting we. are about to experience a wave of M&A throughout the telecoms sector.
BT led a broad rally in London-Listed shares on Monday with most industry sectors rising, particularly those with exposure to commodities and those heavily hit last Friday.
IAG added 3% after being destroyed on the Omicron news last week.
Polymetal was the FTSE 100’s biggest faller as investors reduced exposure to the safe haven of precious metals shares.
