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World stocks have steadied and oil prices have eased in quiet trade as flight cancellations over Christmas revived concerns that the Omicron virus variant could slow down the economy heading into the new year.
US airlines have cancelled or delayed thousands of flights over the past three days due to COVID-19-related staff shortages, while several cruise ships had to cancel stops after outbreaks aboard.
In Asia, China reported its highest daily rise in local COVID-19 cases in 21 months over the weekend as infections more than doubled in the northwestern city of Xian, the country's latest COVID hot spot.
France hit another COVID-19 infection record on Friday, prompting the government to convene a special meeting on Monday which could trigger new restrictions on movement.
World shares were little changed by 0946 GMT on Monday as tentative gains in Europe were offset by earlier weakness across Asian markets, although some investors were confident a global recovery would regain steam next year.
"Heading into 2022 we will still COVID uncertainties but the good news is that according to the WHO we may be see the end of the pandemic towards the end of year," said Jawaid Afsar, sales trader at Securequity.
He added that next year markets would also have to contend with other issues, ranging from inflationary pressures to policy tightening and geopolitical risks.
The pan-European STOXX 600 equity benchmark was up 0.2 per cent, while Japan's Nikkei ended 0.4 per cent lower and South Korea's Kospi dropped 0.4 per cent.
Mainland Chinese shares weakened, with Shanghai's benchmark sliding 0.4 per cent and an index of blue chips retreating less than 0.1 per cent. That was despite property stocks getting a lift after China's central bank vowed to promote healthy development of the real estate market.
Australia, Hong Kong and Britain are among markets closed on Monday for holidays.
Wall Street trading was set to resume later in the day following a holiday on Friday. US stocks closed at record levels on Thursday amid signs that Omicron may cause a milder level of illness, even as the highly transmissible strain led to a surge in case numbers around the world.
E-mini futures pointed to a 0.1 per cent rise for the S&P 500 when it reopens.
Safe-haven US Treasuries saw mild demand, with 10-year yields falling 1 basis point (bps) to 1.4807 per cent, retreating further from Thursday's high just above 1.5 per cent. Germany's 10-year yield, the benchmark for the euro zone, added 2 bps to hit a one-month high at -0.231 per cent.
In the foreign exchange markets, the dollar was rangebound, despite a hawkish turn at the Federal Reserve that saw policymakers signalling three quarter-point rate hikes next year.
The dollar index, which measures the currency against six major peers, was up 0.1 per cent at 96.23, around the mid point of the trading range seen over the past few weeks.
Among risk-sensitive currencies, the Australian dollar fell 0.2 per cent and the British pound gained 0.2 per cent, while the euro fell 0.1 per cent.
The Turkish lira fell 5.9 per cent against the dollar amid persisting concern over the country's monetary policy, having rallied last week on state-backed market interventions.
In the crude market, US West Texas Intermediate futures fell 1.1 per cent to $73.01 a barrel. The contract did not trade on Friday because of the US market holiday.
Brent crude was up 0.1 per cent at $76.20 a barrel, after settling down 0.92 per cent on Friday.
Gold dipped 0.1 per cent to $1,805.6 per ounce as the uptick in the dollar made bullion more expensive for holders of other currencies.