Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European Stocks Lower; Emirates President Warns of Airlines "Trauma"

Stock MarketsNov 30, 2021 03:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse 

Investing.com - European stock markets traded sharply lower Tuesday, weighed by fresh concerns about the effectiveness of the current vaccines in combating the newly discovered omicron Covid variant.

At 3:50 AM ET (0850 GMT), the DAX in Germany traded 1.4% lower, the CAC 40 in France also fell 1.6% and the U.K.’s FTSE 100 dropped 1.3%. 

Sentiment slumped Tuesday after Moderna (NASDAQ:MRNA) chief Stephane Bancel suggested in a Financial Times article that existing Covid-19 vaccines would struggle to cope with the omicron variant, predicting a ‘material drop’ in their effectiveness.

He also warned that it would take months before the drugmakers can manufacture the new variant-specific injections in sufficient quantities to be effective.

Moderna, along with Pfizer (NYSE:PFE) and AstraZeneca (NASDAQ:AZN), have supplied most of the developed world with the vaccines to combat the Covid-19 virus.

The omicron variant has now spread to more than a dozen countries, prompting the introduction of new travel curbs. 

A major hit to the peak December travel season would cause "significant traumas" in the global aviation business, Emirates airline President Tim Clark said on Tuesday.

Air France KLM (OTC:AFLYY) stock fell 2.5%, IAG (LON:ICAG) stock dropped 0.8%, Lufthansa (DE:LHAG) stock fell 0.7%, while easyJet (LON:EZJ) stock only fell 0.2% after the budget airline stated that it is expecting passenger numbers to return to pre-pandemic levels next summer despite uncertainty hitting the winter months.

Elsewhere, Inditex (MC:ITX) stock fell 4.9% after the owner of the Zara and Massimo Dutti chains announced a shake up at the top of its management, with Marta Ortega Perez, the daughter of founder Amancio Ortega, taking over as chief executive from April.

Ericsson (BS:ERICAs) stock fell 0.9%, matching the overall weakness, even after the Swedish telecom equipment maker raised its global forecast for 5G mobile subscriptions to 660 million by the end of this year, citing stronger-than-expected demand in China and North America.

Turning to economic data, French inflation rose unexpectedly in November to hit its highest level in 13 years, with consumer prices up 0.4% from last month, giving a 12-month inflation rate of 3.4%, the highest since September 2008.

This could put upward pressure on the flash November Eurozone CPI figure, due later in the session. This was already expected to climb to an annual 4.5% from October’s 4.1%, more than double the European Central Bank’s 2% target. German unemployment figures for November also fell to their lowest since March last year, extending a series of substantial declines with a steeper-than-expected drop of 34,000 in seasonally-adjusted terms.

Earlier Tuesday, China recorded a surprise growth in factory activity in November, the first in three months, with the country’s manufacturing purchasing managers index coming in at 50.1 in November, above the previous month’s 49.2 figure. The non-manufacturing PMI was at 52.3, higher than the previous month’s 52.4 figure.

Crude prices retreated as the omicron concerns returned, with traders fretting about fresh lockdowns and the associated hit to global demand. 

That said, with a further hit to demand likely, expectations are growing that the Organization of Petroleum Exporting Countries and its allies, a group known as OPEC+, will put on hold the plans to add 400,000 barrels a day in January when it meets later in the week.

By 3:50 AM ET, U.S. crude futures traded 2.5% lower at $68.19 a barrel, having climbed 2.6% on Monday, while the Brent contract fell 2.4% to $71.45, after rising 1% during the previous session.

Additionally, gold futures rose 0.6% to $1,795.15/oz, while EUR/USD traded 0.5% higher at 1.1351.

European Stocks Lower; Emirates President Warns of Airlines "Trauma"
 

Related Articles

Woodside shareholders approve BHP petroleum merger
Woodside shareholders approve BHP petroleum merger By Reuters - May 19, 2022

By Sonali Paul BRISBANE (Reuters) -Shareholders in Woodside (OTC:WOPEY) Petroleum approved on Thursday a merger with BHP Group (NYSE:BHP)'s petroleum arm to create a top 10 global...

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