European stocks are seen opening on a firm note Wednesday after the World Health Organization (WHO) laid to rest apprehensions about the efficacy of existing vaccines against the new coronavirus strain.
The upside, however, may remain capped somewhat amid rising geopolitical tensions between the United States and Russia.
After a tense two-hour summit, the U.S. said it is preparing “robust responses” over fears of a Russian invasion of Ukraine.
Asian markets followed Wall Street higher and Treasury yields pared an advance after rising across the curve Tuesday, while the dollar held a decline against most of its major peers. Oil edged lower in Asian trade after climbing more than 3 percent on Tuesday.
It’s a quiet day on the economic calendar, with employment data from France and speeches of ECB President Lagarde and ECB member De Guindos likely to be in focus.
Federal Reserve Bank of Minneapolis President Neel Kashkari speaks Thursday while a slew of Chinese data, including inflation data will be out Thursday. The U.S. consumer price index report is due on Friday.
U.S. stocks staged the biggest rally in nine months overnight and Treasuries fell amid optimism that the Omicron strain won’t derail global growth.
The tech-heavy Nasdaq Composite jumped as much as 3 percent while the Dow climbed 1.4 percent and the S&P 500 surged 2.1 percent.
European stocks also closed on a strong note Tuesday as Chinese policymakers shifted toward easing mode and a report showed German industrial output rose more than expected in October.
The pan European Stoxx 600 soared 2.5 percent. The German DAX surged 2.8 percent, France’s CAC 40 index rallied 2.9 percent and the U.K.’s FTSE 100 added 1.5 percent.