UK Shares Struggle Ahead Of BoE Meeting

UK stocks struggled for traction on Monday as a warning over the omicron variant weighed on THE market sentiment.

The FTSE 100 index UK:UKX slipped by 0.2% to settle at 7,278, though the mining sector appeared to be getting a boost, after China’s top officials reportedly set 2022 targets that included stabilizing the economy over the weekend. Prospects for miners tend to improve in step with global growth.

The world’s central banks are in control, so it shouldn’t be a surprise that the stock market is slipping Monday, particularly with all major central banks scheduled to hold crucial policy-setting meetings this week.

European stocks slipped on Monday as traders reacted to developments regarding the omicron variant and looked ahead to monetary policy decisions by some of the world’s largest central banks.

It is set to be an important week for monetary policy with the US Federal Reserve, the Bank of Japan, the Bank of England and the European Central Bank all due to make decisions this week.

The Bank of England wants to raise interest rates, but may be forced to delay due to the weakness of the UK economy or the impact of inflation.

The UK on Sunday raised its COVID threat level, with Prime Minister Boris Johnson warning of a “tidal wave” of COVID cases as a result of omicron. From this week, booster jabs will also be offered to all adults in England.

Johnson confirmed Monday that at least one patient infected with the new omicron variant has died in the country. “Sadly yes, omicron is producing hospitalizations and sadly at least one patient has been confirmed to have died with omicron,” Johnson told reporters on a visit to a vaccination clinic near Paddington, London, according to Sky News.

On the data front in Europe, investors will be watching the Bank of England’s financial stability report and UK stress test results. Bank chief Andrew Bailey is expected to hold a press conference at 5:30 p.m. London time.

When it comes to individual stock action, Credit Suisse announced an overhaul of its executive board early Monday. Shares were down 1.7%.