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Romain Fournier

Chief Editor
Having worked in the British, French and Swiss financial press, Romain is able to report on local and international issues, as comfortable in French as in the language of Shakespeare, Romain Fournier leads the editorial team at Marketscreener. Fine connoisseur of the English-speaking markets, Romain delivers an editorial every day on US and UK markets.

Time to buy the dip?

11/29/2021 | 05:01am EST

After Friday’s debacle, the FTSE 100 jumped 1% this morning, with many investors buying the dip. This is despite worries about the severity and transmissibility of the variant. The new “Omicron variant” has reached Europe, after originating in Southern Africa.

The first comments from experts indicate that the virus has many mutations on its spike protein, which could render vaccines less efficient. Omicron also looks more transmissible. Some South African reports mention mild to moderate symptoms, but it's too early to tell, and the WHO said “there is currently no information to suggest that symptoms associated with Omicron are different from those from other variants”

The impact of the economy is also uncertain: “The experience with the pandemic so far suggests that near-term setbacks to economic performance do not dampen the longer-term outlook for inflation”, says Berenberg, adding: “As we have argued since mid-March 2020, the pandemic does not justify a dramatic and lasting re-rating of the value of the productive capacity of major economies as expressed in the overall levels of equity prices. In short: we do not see Omicron as a reason for a sustained bear market.”

Today, BT shares jumped 7% on a report from the Economic Times that India's Reliance industries could be eyeing a purchase.

Things to read today:

Omicron Can Boost Equities If Symptoms Are Mild, Ackman Says (Bloomberg)

Omicron Variant Resurrects the Risk of US Stagflation (Bloomberg)

Investors rush into private markets in search of returns (Financial Times)

© MarketScreener.com 2021
Stocks mentioned in the article
ChangeLast1st jan.
DOW JONES AFRICA TITANS 50 INDEX -0.76% 555.77 Delayed Quote.3.56%
FTSE 100 -0.28% 7542.95 Delayed Quote.2.15%
RELIANCE INDUSTRIES LTD 0.15% 2539 Delayed Quote.7.21%
S&P AFRICA 40 INDEX -0.52% 182.84 Delayed Quote.4.35%