Tech slide, Omicron worries pull European shares lower (updated)

Genfit SA

17/12/2021 10:57

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    * Tech shares hit by Wall St selloff
    * STOXX 600 on course for weekly loss 
    * Diasorin slumps on weak 2022 forecast 

 (Adds comment, updates prices)
    By Anisha Sircar
    Dec 17 (Reuters) - European stocks were on track to book
weekly losses on Friday as technology shares fell, tracking an
overnight selloff in their U.S. counterparts, while investors
fretted over the economic impact of the fast-spreading Omicron
coronavirus variant.
    The pan-European STOXX 600 index  .STOXX  dropped 0.6% in
morning trade, erasing some of the gains from a day-earlier
rally. 
    The European Central Bank on Thursday slightly reined in
monetary policy support, while the Bank of England hiked rates,
a day after the U.S. Federal Reserve signalled plans to tighten
rates in 2022. 
    "Ahead of the meetings, markets were already very
defensively positioned based on equity parameters. So when there
was a hawkish surprise, the immediate reaction was for markets
to go higher," said Ankit Gheedia, BNP Paribas' head of equity
and derivative strategy for Europe.
    "The growth factor stocks like tech are underperforming.
Hawkish central banks could lead to higher rates which could
drive equities with the highest duration (growth factor) to
underperform."
    Tech stocks  .SX8P  fell 1.5%. Although they have shed
nearly 3% in value this month, the sector is still up 27% for
the year, far outperforming a 19% rise in the STOXX 600.
    Underscoring recent hawkish moves by central banks, data
showed euro zone inflation surged to its highest rate on record
in November, with more than half of the increase due to a spike
in energy prices.  urn:newsml:reuters.com:*:nL8N2T2257
    Germany's blue-chip DAX  .GDAXI  dropped 0.6% and was set to
log its worst week in nearly a month after a survey showed
business morale declined for a sixth month as Europe's largest
economy feels the effects of supply bottlenecks and COVID-19
restrictions.  urn:newsml:reuters.com:*:nL8N2T21X5
    Auto stocks  .SXAP  dropped 1.6% after European industry
data showed the number of new vehicles registered dropped 17.5%
in November on the heels of a global semiconductor shortage and
supply snags.  urn:newsml:reuters.com:*:nL8N2T1628
    Airbus  AIR.PA  gained 0.9% after completing its third big
win in 36 hours at the expense of Boeing  BA.N  with an Air
France-KLM deal.
    Italian diagnostics firm DiaSorin  DIAS.MI  slumped 11.8%,
after it forecast weaker 2022 sales as COVID-19 revenues plunged
nearly 60%.  urn:newsml:reuters.com:*:nL1N2T11MK  urn:newsml:reuters.com:*:nL4N2T14TJ
    French pharma group Genfit  GNFT.PA  jumped 47.4%, tracking
its best day in nearly a decade, after striking a long-term
commercial partnership with Ipsen  IPN.PA .  urn:newsml:reuters.com:*:nL8N2T21RB

 (Reporting by Anisha Sircar in Bengaluru; Editing by Rashmi
Aich and Anil D'Silva)
 ((Anisha.Sircar@thomsonreuters.com;))