Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

European shares end lower as tech, luxury stocks lose ground

Stock Markets Dec 08, 2021 12:40PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, December 7, 2021. REUTERS/Staff 2/2
 
PFE
-0.76%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MS
-1.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
STOXX
+0.36%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IFNNY
+3.79%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sruthi Shankar and Susan Mathew

(Reuters) -European stocks ended a volatile session lower on Wednesday after marking their strongest two-day gain in more than a year, with tech and luxury stocks reversing strong gains as investors pitted vaccine reassurances against COVID-19 curbs.

After jumping 3.8% over the past two days, the region-wide STOXX 600 index closed down 0.6%.

While defensive buying kept it buoyed in morning trade, worries about the effectiveness of existing vaccines against the Omicron COVID-19 variant and possibilities of tougher restrictions this week in Britain weighed on sentiment.

The index got some respite when BioNTech and Pfizer (NYSE:PFE) said a three-shot course of their COVID-19 vaccine was able to neutralise the Omicron variant in a laboratory test.

That lifted travel and leisure stocks, with online gambling company Evolution jumping 7.3%, cruise operator Carnival (NYSE:CUK) adding 4% and holiday firm TUI rising 2%, even as it reported an annual operating loss of over 2 billion euros.

U.S. investment bank JP Morgan predicted on Wednesday that 2022 will mark the end of the pandemic and see a full global economic recovery.

"European equities are in a sweet spot," said State Street (NYSE:STT) Global Advisors in a 2022 outlook note.

"European stocks offer attractive valuations relative to their U.S. counterparts... (and) currently boast the strongest earnings and growth expectations across developed markets."

Healthcare stocks, among those considered more stable during times of economic uncertainty, also gained.

However, chipmakers ASML and Infineon (OTC:IFNNY), and luxury stocks Louis Vuitton-owner LVMH, Hermes and Gucci-parent Kering (PA:PRTP) fell between 1.4% and 4.6%, weighing the most on STOXX 600.

A recent rally has seen the STOXX 600 recover all losses that were driven by the detection of the Omicron variant on Nov. 26, with the index now just 3% below its all-time high.

U.S. inflation data on Friday and a slew of major central bank meetings next week could set the tone for financial markets, as investors try to gauge when policymakers will start withdrawing pandemic-era stimulus.

Shares in Nestle SA (SIX:NESN) rose 1.6% to hit an all-time high, boosting the Swiss index to fresh peaks, after the company trimmed its stake in French beauty giant L'Oreal.

Volkswagen (DE:VOWG_p) slipped 0.3% after it said tight chip supply would continue to pose challenges to Europe's largest carmaker during at least the first half of 2022.

Meal-kit company Hellofresh slid 10.9% after an underwhelming 2022 earnings outlook, while chemicals and recycling company Umicore dropped 9% on cutting its outlook for the second time in three months.

European shares end lower as tech, luxury stocks lose ground
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email