European Stocks Close Higher

(RTTNews) - European stocks closed higher on Monday, rebounding on bargain hunting at several counters following the previous session's sell-off.

Traders appeared to be betting on optimism about growth despite concerns about a new variant of the coronavirus that emerged last week.

The World Health Organization, which held an emergency meeting on Friday, declared the new virus variant a matter of concern, noting its transmissibility and named it the Omicron variant of the coronavirus.

According to reports, the Omicron variant has been found in the U.K., Israel, Belgium, the Netherlands, Germany, Italy, Australia and Hong Kong. Many countries, including the U.S., have already moved to restrict travel from southern Africa.

While the WHO has said it could take weeks to understand the variant's severity, a South African doctor who has treated cases said symptoms so far seemed to be mild.

Meanwhile, Moderna Inc's Chief Medical Officer Paul Burton said Sunday the vaccine maker could roll out a reformulated vaccine against the omicron variant early next year.

The pan European Stoxx 600 advanced 0.69%. The U.K.'s FTSE 100 gained 0.94%, Germany's DAX ended 0.16% up and France's CAC 40 climbed 0.54%, while Switzerland's SMI gained 0.18%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Finland, Greece, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden and Turkey closed higher.

In the UK market, BT Group shares gained more than 6% on reports Indian oil-to-telecom conglomerate Reliance Industries is likely to make a potential bid to buy a stake in the British telecom giant.

Compass Group surged up 4.7%. JD Sports Fashion, Johnson Matthey, BP, BHP Group, Royal Dutch Shell, ITV, Aviva, ICP, Halma, 3i Group, Schrodders, Anglo American Plc, Rio Tinto, Lloyds Banking Group and Diageo gained 1.5 to 3.6%.

Hargreaves Lansdown tumbled 5.6%. Polymetal International, Hikma Pharmaceuticals, Darktrace, Sainsbury (J) and Royal Mail shed 1 to 2.25%.

In the French market, Kering, Unibail Rodamco, STMicroElectronics, Hermes International, Sodexo, Veolia, Atos and Dassault Systemes gained 1 to 3%.

Faurecia shares plunged nearly 8% after the company lowered its full-year earnings guidance. Valeo slid nearly 4% and Carrefour shed about 2%. Renault also ended sharply lower.

In Germany, RWE, Puma, E.ON, Infineon Technologies, Siemens Healthineers, SAP and Munich RE gained 1.2 to 3%.

Continental shed more than 4%. Qiagen, HeidelbergCement, Merck, Deutsche Wohnen, Zalando, Vonovio and Covestro ended lower by 1 to 2.5%.

In economic news, Eurozone economic confidence weakened to a six-month low in November largely due to the deterioration in consumer sentiment, survey results from the European Commission showed.

The Eurozone economic sentiment index fell to 117.5 in November, in line with expectations, from 118.6 in the previous month. This was the lowest score since May.

The weakness in overall confidence was driven by a marked decline in consumer confidence, while sentiment remained broadly unchanged in industry and services and improved in retail trade and construction.

The industrial sentiment indicator came in at 14.1, down slightly from October's 14.2. The expected level was 13.9. At the same time, the services confidence index rose to 18.4 from 18.0 a month ago. Economists had forecast the index to fall to 16.6.

By contrast, the consumer confidence indicator declined to -6.8 from -4.8 in the previous month. The score matched the preliminary estimate.

Data from Destatis showed Germany's consumer price inflation accelerated more than expected in November. The consumer price index rose 5.2% year-on-year following a 4.5% increase in October. Economists had forecast 5% inflation.

The record high of CPI inflation for Germany is 6.2% logged in 1992.