(Bloomberg) — European equities were steady in muted trading before the holidays as traders weighed omicron lockdown risks against optimism that growth can continue.
The Stoxx Europe 600 Index was up 0.1% by 9:28 a.m. in London. Technology led the gainers, with Delivery Hero SE jumping as it retreats from loss-making parts of Germany. The expected reduction in competition lifted shares of rival Just Eat Takeaway.com N.V., which was also boosted by a new U.K. grocery delivery partnership.
Travel and leisure stocks were mostly steady as U.K. Prime Minister Boris Johnson ruled out stricter pandemic restrictions before Christmas while cautioning that they may come later. Autos and utilities underperformed.
European equities have slipped from record highs in recent weeks amid concern that the omicron Covid-19 strain will damage the economic recovery, and as central banks turned more hawkish in response to surging inflation.
U.S. monetary policy turning more hawkish may be having a greater impact on markets than the latest wave of infections, according to Marko Behring, head of asset management at Fuerst Fugger Privatbank.
“The Fed’s change of direction since December has depressed the stock market mood and speaks for a much more turbulent year in 2022,” he added. “Hence, it doesn’t hurt to be prepared for higher volatility and to reduce risk at one point or another.”
However, sentiment was helped Wednesday by comments from U.S. President Joe Biden that there’s still a chance he can strike a deal with Senator Joe Manchin to get his economic plan through Congress.
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