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Stock futures, oil rise as investors weigh omicron variant
Marketplace worried omicron variant will boost inflation: El-Erian
Allianz chief economic adviser Mohamed El-Erian discusses the impact of the new coronavirus strand on economic recovery.
Asian stocks fell while U.S. equity futures and European indexes rose, as investors mulled the economic implications of a new, highly infectious Covid-19 variant that led some countries to tighten border controls and impose other precautionary measures.
S&P 500 futures were up around 0.7%, suggesting that U.S. markets could open higher after falling sharply Friday, following last week’s Thanksgiving holiday. Futures tied to the Dow Jones Industrial Average were 0.4% higher, while U.S. crude oil also rebounded partially, jumping 4% to $70.91 a barrel.
In Europe, the pan-continental Stoxx Europe 600 added 1%.
MARKETS WORRIED COVID OMICRON VARIANT WILL LEAD TO NEW RESTRICTIONS, BOOST INFLATION: EL-ERIAN
"The first reaction for markets was to panic, but people are now thinking that perhaps…the selloff was overdone," and there might not be a very sharp policy response in terms of restrictions, such as on travel, said Chang Wei Liang, a macro strategist at DBS Bank in Singapore.