Europe open: Shares higher, but SOBI plunges as bid collapses

by | Dec 3, 2021

European shares opened the final session of a volatile week in positive mood as investors eyed US payroll data later on Friday against a backdrop of rising cases of the Omicron Covid variant.
The pan-European Stoxx 600 index was up 0.44% in early trade, with all major regional bourses higher.

“Markets have regained some poise at the end of a difficult week which was marred by Omicron fears and an increasingly hawkish outlook from central banks,” said Richard Hunter, head of markets at Interactive Investor.

“Investors switched into optimistic mode following the earlier Federal Reserve suggestion that the end of the tapering programme and therefore the beginning of interest rate hikes could come earlier than expected next year. Alongside no immediate change to its supply plans at OPEC, there is a growing feeling that future variants may not, after all, be enough to derail economic policy per se.”

Hunter said that after a stronger-than-expected reading of 531,000 US jobs being added in October, expectations for November were for a figure of 550,000.

Oil stocks gained in line with crude prices after OPEC+ said it would review supply additions ahead of its next meeting if Omicron hits demand.

Fears over the potential impact of the omicron variant appeared to abate slightly after scientists in South Africa, where the variant was first discovered, said existing vaccines should still offer protection against severe cases of Covid-19. All three cases detected in the U.S. showed only mild symptoms.

In equity news, Shares in Swedish Orphan Biovitrum plunged 23% after US private equity firm Advent International and Singapore’s sovereign wealth fund said they were withdrawing their $8bn bid for the drugmaker.

BP rallied after an upgrade to ‘buy’ from ‘hold’ at Deutsche Bank.

Copper producer Aurubis gained after beating its guidance and reporting a 60% leap in operating earnings.

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