Dec 06, 2021 03:51AM ET
By: AnalysisWatch
European stock markets rose on Monday and started the new week on a positive note despite weak German industrial orders. This was due to hopes that the Omicron variant of COVID-19 is less dangerous than earlier strains of the disease.
At 3:50 AM ET (0850 GMT), Germany's DAX was trading 0.8% higher, France's CAC 40 was up 0.5% and the UK's FTSE 100 climbed 0.7%.
The emergence of the new COVID variant and uncertainty over its economic impact as countries introduce new restrictions to combat the spread of the disease has roiled stock markets around the world.
The International Monetary Fund warned on Friday that it was likely to lower its estimates for global economic growth because of the new variant.
In Europe, the week began on a positive note, with hopes that the new variant would only cause a mild reaction, even if it is more contagious than other versions. However, these hopes are tempered by caution as scientists try to find out if this is the case and how much protection is provided by existing COVID-19 vaccines.
Economic data is also likely to weigh on the market somewhat: new orders in German industry fell 6.9% month-on-month in October, after rising 1.3% the previous month.