European Shares Seen Opening Mixed

Business

European stocks are seen opening mixed on Wednesday, with U.K. markets seen up as traders return from the Christmas holiday break.

Asian stocks traded mixed as investors grappled with increasing global numbers of Omicron cases, Beijing’s tightening oversight of overseas share sales and economic risks from a property slowdown.

Much is still uncertain about Omicron, which is spreading extremely quickly.

Though Asia has relatively few reported infection cases of the new variant, the United States and Europe account for a growing proportion of new cases, leading to a return to pandemic restrictions in some places.

Gold prices inched higher as the dollar and U.S. Treasury yields failed to gain ground despite strong U.S. economic data and the growing risk of persistent higher inflation. Oil traded flat after five sessions of gains.

It’s a quiet day ahead on the Eurozone’s economic calendar, with no major stats to influence trading. Across the Atlantic, trading may be impacted by reaction to reports on the U.S. goods trade deficit and pending home sales.

U.S. stocks ended mostly lower overnight as investors cashed in on recent gains on hopes the global economic recovery can weather risks from the Omicron virus variant and tightening monetary policy.

The Dow edged up 0.3 percent to extend gains for the fifth straight day while the Nasdaq Composite fell 0.6 percent and the S&P 500 slid 0.1 percent to snap a four-day winning streak.

European stocks rose on Tuesday in thin holiday trade after the release of strong holiday season sales figures in the United States.

The pan European Stoxx 600 gained 0.6 percent. The German DAX climbed 0.8 percent and France’s CAC 40 index rose 0.6 percent while the U.K. markets were closed for a holiday.

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