Europe close: Stocks firmer as Christmas cheer replaces Omicron fear
By Josh White
Date: Thursday 23 Dec 2021
(Sharecast News) - European shares finished in the green on Thursday in slow pre-Christmas trade, as market participants punted on hopes the 'Omicron' variant of Covid-19 would not overwhelm health systems and lead to further restrictions.
The pan-European Stoxx 600 index was up 1% at 483.15 in thin volumes, and regional bourses were higher as well, with the CAC 40 in Paris last up 0.77% and Frankfurt's DAX ahead 1.04%.
"Given how light the calendar has been this week it is hard to pin the move on anything firm, but at least the Omicron situation appears to be lessening in the scope of its potential dangers, providing one source of optimism," said IG chief market analyst Chris Beauchamp.
"Markets are now firmly into the festive period, and traditionally this is a better one for stocks, even if it is low liquidity and lack of news that drives the move higher.
"2021 proved to be a solid one across the board for equities, even if the year didn't match up to all the optimistic expectations prevailing in January."
On the pandemic front, research from Imperial College London suggested the risk of hospitalisations for patients with Omicron could be 40% to 45% lower than for those with the Delta variant.
A separate South African study found people diagnosed with Omicron in the country between 1 October and 30 November were 80% less likely to be admitted to hospital than those diagnosed with another variant in the same period.
Travel and leisure shares were up as a result, with British Airways and Iberia parent IAG up 2.11%, easyJet ascending 2.87%, Wizz Air 2.01% firmer and Deutsche Lufthansa ahead 0.98%.
Engine maker Rolls-Royce was up 2.11%, Premier Inn owner Whitbread rose 0.44% and travel terminal concessionaire WH Smith was 2.61% firmer.
Shares in Philips rose 2.21% after the company said test results of the volatile organic compounds emissions of the first-generation DreamStation sleep devices showed that exposure to the compounds identified thus far was not expected to result in long-term health consequences for patients.
The company in June issued a voluntary recall notification for some of its sleep and respiratory care products to address potential health risks related to the polyester-based polyurethane sound abatement foam in the devices.
Flutter Entertainment shares advanced 2.08% after the company said it would buy Italian online gaming operator Sisal for £1.62bn, as the online betting group looks to expand its footprint in Europe.
Continental was up 2.47% after its chief executive said in a magazine interview that the German automotive supplier could hit the upper end of its profit margin outlook in 2021 after vehicle production picked up in the fourth quarter.
On the downside, AstraZeneca reversed earlier gains to close down 0.22% after the pharma company said a three-dose course of its Covid-19 vaccine was effective against the Omicron variant, citing data from an Oxford University lab study.
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