European stocks seen higher on signs of hope about omicron

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European stocks are set to open slightly higher Thursday as traders looked to signs that the omicron coronavirus variant is not as severe as previously feared.

Investors reacted to a study out of South Africa — where the omicron strain was first discovered — suggesting a reduced risk of hospitalization and severe disease compared to delta.

The study, which is not yet peer reviewed, found people diagnosed with omicron in South Africa from Oct. 1 to Nov. 3 were 80% less likely to be hospitalized than if they caught another variant in the same period. Experts say it is still too early to know for sure the severity of omicron, but the study offers hope that both the human and economic cost of the strain will not be as severe as initially feared. Omicron's rapid spread has led governments around the world to reimplement some Covid restrictions in a bid to contain it.

More good news arrived Wednesday as the U.S. Centers for Disease Control and Prevention authorized an antiviral Covid pill from Pfizer for people aged 12 and above at risk of severe illness.

 

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