European Equities Extend Gains as Omicron Fears Fade

Europe's major stock markets advanced Wednesday as investors drew strength from easing Omicron virus concerns and shrugged off a mixed performance on Wall Street and in Asia.

London firmed 0.1 percent, while Frankfurt jumped 0.7 percent to come within a whisker of its all-time high, and Paris won 0.8 percent as it pushed further into record territory.

On Wall Street, the Dow continued to climb from its record closing high at the opening bell on Wednesday, but both the S&P 500 and the tech-heavy Nasdaq Composite moved further lower.

Markets wavered in Asia after a tepid overnight Wall Street lead, with inflation and expected interest rate hikes returning to the fore as Omicron fears ease.

In foreign exchange, the dollar slid versus the euro before minutes from the US Federal Reserve's latest interest rate meeting.

Oil rose further after climbing Tuesday, when OPEC and its allies agreed as expected to raise output by 400,000 barrels per day in February.

"Overall, risk appetite remains positive," said ThinkMarkets analyst Fawad Razaqzada.

"The biggest driver behind this is relief that Omicron is not as deadly as Delta, which is fuelling expectations that travel restrictions and lockdowns will be lifted soon."

- Omicron relief rally -

While the new Covid variant continues to spread rapidly around the world, forcing governments to maintain containment measures, its apparently milder symptoms have also allowed traders to focus more on future economic policies and plans to rein in surging prices.

Later Wednesday sees the release of minutes from the Fed's December rate meeting, which dealers hope will provide a clearer idea about officials' policy plans.

That is followed by Friday's US jobs data for last month that could play a key role in their next deliberations.

With the bank due to end its vast bond-buying stimulus program by March, commentators are debating when and how many times the Fed will hike U.S. borrowing costs as it tries to overcome inflation running at a pace not seen in decades.

"With the Fed minutes still to come later and the US jobs report on Friday, there's plenty to look forward to this week that could lay the groundwork for the rest of the month as far as investors sentiment goes," said market analyst Craig Erlam at trading platform Oanda.

- China tech sector weighs -

Chinese technology firms, which have been hit by a crackdown from China's government, were a big drag on Hong Kong as it sank more than one percent.

Concerns about a new Covid outbreak in the city that has led to the reimposition of containment measures added to the glum mood.

Shanghai stocks also slid but Tokyo clung onto positive territory.

In company news, China Mobile briefly soared around 10 percent on its debut in Shanghai after the telecoms giant was delisted in New York under a standoff between Beijing and Washington. It ended only slightly higher, however.

The share offer is expected to raise $8.8 billion after the company exercises an over-allotment option, according to Bloomberg News, making it the largest on China's domestic stock markets for more than a decade.

- Key figures around 1430 GMT -

London - FTSE 100: UP 0.1 percent at 7,514.13 points

Frankfurt - DAX: UP 0.7 percent at 16,263.27

Paris - CAC 40: UP 0.8 percent at 7,374.31

EURO STOXX 50: UP 0.6 percent at 4,391.49

New York - DOW: UP 0.1 percent at 36,843.02

Tokyo - Nikkei 225: UP 0.1 percent at 29,332.16 (close)

Hong Kong - Hang Seng Index: DOWN 1.6 percent at 22,907.25 (close)

Shanghai - Composite: DOWN 1.0 percent at 3,595.18 (close)

Euro/dollar: UP at $1.1335 from $1.1289 late Tuesday

Pound/dollar: UP at $1.3556 from $1.3529

Euro/pound: UP at 83.62 pence from 83.40

Dollar/yen: DOWN at 115.71 yen from 116.12 yen 

Brent North Sea crude: UP 1.2 percent at $80.94 per barrel

West Texas Intermediate: UP 1.1 percent at $77.80