European stocks down

AMSTERDAM/LONDON: European shares ended lower on Monday, with travel stocks leading losses on concerns over bans on British tourists, while a spike in Asian Covid-19 infections hit crude prices and saw energy stocks tumble more than 2%.

The pan-European STOXX 600 ended 0.6% lower, with the travel and leisure index down 4.4% to a one-month low.

International Consolidated Airlines, Easyjet, Wizz Air and Ryanair fell between 4% and 6%.

Germany’s DAX index ended 0.3% lower, while British blue-chip stocks shed 0.9%.

Energy stocks fell 2.3%, with oil prices dropping as a spike in Asian infections of the Delta variant threatened to dent demand.

The benchmark STOXX 600 traded below record highs hit just over a week ago as global financial markets turned choppy following signals the US Federal Reserve could start raising interest rates sooner than expected.

Technology stocks rose 0.4%, and were among the few gainers for the day as jitters over the Delta variant saw investors flood back into pandemic-resistant sectors.

In company news, Burberry Group’s shares tumbled 8.7% to the bottom of the STOXX 600 as Chief Executive Officer Marco Gobbetti resigned to take the top job at Italian luxury group Salvatore Ferragamo. Ferragamo shares fell 2.7%.

Nokia topped the STOXX 600 with a 5.8% jump, after Goldman Sachs upgraded the stock’s rating on potential in the wireless equipment market.

The Times reported that Germany was considering a ban on British travellers to the European Union, regardless of their vaccination status, because of the highly contagious, widespread Delta variant of the coronavirus.

Hong Kong also announced a ban on all passenger flights from the UK, starting this week, due to similar concerns.

“Despite a number of popular tourist spots now being on offer to British holiday makers thanks to the government’s updated green list, it is precarious and it won’t mean a great deal if Germany gets its way and UK tourists are banned entry to the whole EU because of a concern over the Delta variant,” said Danni Hewson, financial analyst at AJ Bell.

Crude markets were also rattled by anticipation ahead of a major OPEC+ meeting this week, where the cartel could possibly increase production.

All eyes this week will be on June inflation readings as well as business activity data from across the eurozone.