FTSE 100 wrap: European markets ease as Omicron spreads
Stock market sentiment eased in Europe today as Omicron spreads and several nations consider compulsory Covid vaccination.
Yesterday saw a big rebound, with the FTSE 100 rallying 1.6% during its best session in four months. But today London’s topflight index closed down 38.9 points, or 0.5%, at 7129.
Darktrace topped the fallers, down nearly 9%, or 43p, to 433.8p, after news emerged the cybersecurity giant is being relegated out of the blue-chip stock index.
BT topped the index followed by BHP and Shell. The oil giant today announced the launch of a $1.5 billion share buyback – its first stage of returning cash to shareholders from the sale of its US Permian business.
Elsewhere in Europe the German Dax closed down 192 points, or 1.2%, and Amsterdam’s Euronext down 17 points, or 1.3%.
OPEC and its oil-producing allies announced this afternoon that they would to go ahead with planned 400,000 barrel per day production hike in January. Oil initially dipped on the announcement, before closing up around 1%, but still below $70 a barrel.
The alliance said in a statement that “the meeting remains in session,” however, meaning they can make “immediate adjustments” should the current market conditions shift.
Across the Atlantic, Wall Street had an improved session. The Dow was up 1.7% and the Nasdaq up 0.5% just before midday.
Joshua Mahony, Senior Market Analyst at IG, said: “Oil prices have bounced from their lows, while US stocks have made early gains, but the overall atmosphere in markets remains nervous.”
He added: “What is clear is that the see-saw week is still with us; swings in risk appetite have been dramatic and rapid over the past few sessions… Broadly, the market is still worrying about the Omicrom variant and how it will affect Fed policy, and the interaction of these two issues has provided the fertile soil necessary for the recent selloff.”
That’s all from us on the blog today, join us again tomorrow.
Read More: FTSE 100 Live: European markets ease as Omicron spreads