The latest from London: Restrictions end the rally

Investors are welcoming reports that Omicron might not be the threat they anticipated. But volatility remains high, as uncertainty still lingers around the direction of the pandemic.

Yesterday, stocks were boosted by comments from Pfizer and Moderna, which said that a third injection would protect against Omicron, although nobody knows for how long.

A set of strong earnings reports also lifted UK stocks. But today, the FTSE 100 remains flat due to worries about the impact of the implementation of new Covid-19 restrictions in the country yesterday.

AstraZeneca rises 1.3% after receiving the green light from U.S. regulators for its antibody cocktail to prevent coronavirus infections in individuals with weak immune systems.

Meanwhile, travel stocks took another hit, with British Airways owner IAG dropping 1.6% and EasyJet 2.3%.

 

Things to read today:

Beijing Reins In China’s Central Bank (Wall Street Journal)

John Authers: Markets Overestimate a “Powell Pivot” at their Peril (Bloomberg)

Johnson moves to Plan B to control Omicron spread amid MPs’ anger (Financial Times)