Markets

Defensive sectors lead European stocks lower as global Covid cases rise

Worries persisted about a tighter monetary policy environment

Photograph: iStock

Thu Jan 13 2022 - 10:47

European shares slipped on Thursday, weighed down by defensive and travel stocks, on a continuing surge in Covid-19 cases globally due to the Omicron variant and as worries persisted about a tighter monetary policy environment.

The pan-European Stoxx 600 fell 0.2 per cent as of 0825 GMT, with healthcare, food & beverage and travel stocks leading declines.

German Chancellor Olaf Scholz urged mandatory Covid-19 vaccinations for all adults, while the French Senate approved new measures to tackle the virus, including a vaccine pass.

Germany’s largest solar group SMA Solar Technology dropped 7.7 per cent after a second forecast cut for 2021.

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Food ingredients maker Chr Hansen rose 4.6 per cent after reporting quarterly organic revenue growth well above forecasts.

Swiss plumbing supplies firm Geberit slipped 2.3 per cent as it said increased uncertainty made it impossible to give a 2022 outlook for raw materials prices or the construction market overall.

London's FTSE 100 on Thursday eased from a two-year high touched in the previous session, after a stronger pound hit some dollar earners and as retailers Tesco and Marks & Spencer fell despite raising their profit forecasts.

The blue-chip FTSE 100 index slipped 0.2 per cent, with large international companies Diageo and Unilever falling as sterling hit fresh highs against the dollar. Shares of Tesco and Marks & Spencer dropped 1.8 per cent and 6 per cent in morning trade as the companies raised their forecasts, as expected, after a strong Christmas performance. – Reuters

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