London markets shake off Omicron fears as investors brace for Christmas break

London markets have shaken off fears over the Omicron variant’s impact on the UK’s economic recovery from the pandemic as investors brace for the Christmas break.

The capital’s premier FTSE 100 index closed 0.61 per cent higher at 7,341.66 points, while the mid-cap FTSE 250 index, which is more aligned to the health of the UK economy, added over one per cent to reach 23,080.79 points.

The indexes have now regained and scaled above their Monday losses when concern about looming restrictions to curb Omicron infections took off.

Prime Minister Boris Johnson yesterday confirmed there would be no new restrictions on daily life before Christmas.

But, Johnson did not rule out new curbs being launched immediately after Christmas Day.

London markets rebounded sharply yesterday, regaining Monday’s losses.

Michael Hewson, chief market analysts at CMC Markets UK, said: “While some elements in government seem only too keen to lock down their populations, there does appear to be growing pushback for reaching for the lockdown lever every time things get difficult when infection rates start to rise.”

“It is slowly being recognised that lockdowns are a crude tool which inflict considerable economic, social and mental health damage, which some in government thankfully appear to be slowly beginning to recognise, and yesterday’s market rebound appears to be a reflection of that realisation.”

Miners and travel stocks led the FTSE 100 higher today, with aerospace engineer Rolls Royce and InterContinental Hotels Group climbing 3.30 per cent and 2.70 per cent respectively.

Antofagasta and Glencore rose more than 1.60 per cent.

Meanwhile, on the FTSE 250, Cambridge-based cyber security firm Darktrace was among the best performers, soaring 4.16 per cent.

The pound gained ground on the greenback, strengthening 0.66 per cent to buy $1.3352.