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European stocks, U.S. futures stage tentative rebound

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European stocks opened higher on Monday while U.S. futures also traded in the black in a tentative rebound from last week when the spread of the COVID-19 Omicron variant and expectations of tighter U.S. monetary policy rocked global markets.

Ten-year U.S. yields were also rising back above 1.38% after losing almost 13 basis points last week.

As uncertainty runs high over the human and economic cost expected from the Omicron variant, investors are focusing on rising U.S. inflation which could prevent the Fed from coming to the rescue should market mayhem re-emerge.

 

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