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Europe open: Markets eye vaccine efficacy vs Omicron as travel stocks slide again

By Frank Prenesti

Date: Wednesday 08 Dec 2021

Europe open: Markets eye vaccine efficacy vs Omicron as travel stocks slide again

(Sharecast News) - European stocks crept into positive territory at the opening on Wednesday as investors took stock of the Omicron coronavirus variant's impact on travel stocks.
The pan-European Stoxx 600 index edged ahead 0.15% in early deals with regional bourses mixed.

Germany's BioNTech, which makes Covid-19 vaccines with Pfizer, fell 6.3% after a study showed that the Omicron variant can partially evade protection from two doses of their treatment.

Pfizer CEO Albert Bourla on Tuesday said the Omicron variant appeared to be milder than previous strains, but also seemed to spread faster and could lead to more mutations in the future.

However, South African scientists warned the variant cut significantly the antibody protection generated by the Pfizer and BioNTech vaccine, according to a small preliminary study. However, it added that people who had recovered from the virus and received a booster shot would have more protection from severe disease.

In equity news, TUI shares fell 5% as the world's biggest travel company said Omicron had forced a slowdown in winter bookings. The news had a knock-on effect on sector peers, with airlines IAG, Ryanair and easyJet all lower.

Miniature wargames manufacturer Games Workshop slumped almost 7% as the company said pre-tax profits had slipped in the six months to November 28, despite seeing sales moderately improve.

Berkeley shares rose almost 5% as the UK housebuilder increased its guidance for the current year and beyond after reporting a 26% increase in first-half profit fuelled by its investment in London and surrounding areas.

L'Oreal rose 1.1% after consumer giant Nestle said it would cut its stake in the French cosmetics brand by selling shares worth €8.9bn to about 20%.

German meal-kit company HelloFresh slid 6% after an underwhelming outlook for 2022 earnings.

Chipmakers Infineon Technologies and STMicroelectronics both fell after a Morgan Stanley downgrade to 'equal-weight'.

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