Stocks Improve Despite Delta Variant Concerns Grow

European stocks initiated higher and risked inclination in global markets progressed on Monday, but there is ongoing stress about the COVID-19 Delta Variant hampering economic growth continued as investors weighed up the potential timeline for tapering monetary incentive.

After concerns about stagnant growth dragged stocks and oil prices lower last week, they pulled up in Asian trading. The MSCI world equity index, which follows shares in 50 countries, was up 0.4% at 0803 GMT, improving after having its significant weekly fall since June last week. Europe’s STOXX 600 was up 0.3%.

Oil prices increased, cutting their seven-day losing streak. Brent crude was up 2.1%, and U.S West, Texas Intermediate crude, was up 2% after both recorded their biggest week of losses in more than nine months last week as markets braced for weakened fuel demand due to a surge in virus infections. The dollar stood at 92.264, down 0.2% on the day, compared to its nine-month high of 92.734 reached on Friday.

Robert Kaplanis as a supporter for starting to reduce support for the economy, stated on Friday he may require to modify the view if the Delta Variant of the coronavirus hinders economic growth.”One of the key questions will be when the tapering will start. I think it’s not a done deal that Powell will make any comments around this at all this week – he might wait till September, maybe even until November, to make a major announcement around this one,” said NNIP’s Willner.