Investors welcomed reports of milder symptoms for Omicron, but this is mitigated by the release of a new South African study, which states that the Pfizer/BioNtech vaccine is much less effective against Omicron than Delta.

Another cause for concern is Evergrande. Shares have plummeted after it missed a debt payment deadline, increasing the likelihood of a default.

Meanwhile, the focus is also on December 16 and the Bank of England's rate decision. Failing unemployment and inflation are boosting the chances of a rate hike before Christmas, although the emergence of Omicron could force the central bank to wait.

Among stocks, Clinigen Group soared by more than 10% after it agreed to be purchased by private equity firm Triton Investment Management for 1.2 billion pounds.

However, Deliveroo dropped 3.7% after an EU document revealed that it might be force to reclassify some of its workers as employees.

 

Things to read today:

Economists predict complete ‘taper’ of Fed bond buying by end of March (Financial Times)

Evergrande Restructuring Puts Onus on Xi to Limit Contagion (Bloomberg)

Will China have to loosen policy? (Financial Times)