European shares were flat at the opening on persistent inflation worries and a fall in travel stocks as governments battled to stymie the Delta variant of Covid-19.
The pan-European Stoxx 600 was hovering on the flatline with only Germany’s DAX making any real gains, up 0.35%. Shares followed a mixed session for Asia-Pacific stocks after official data showed that China’s industrial profits for May slowed.
Data released Sunday by China’s National Bureau of Statistics showed profits at China’s industrial firms rose 36.4% in May as compared with a year earlier. That was a slowdown from the 57% year-on-year growth posted in April.
Travel-related stocks were down as Covid outbreaks continued dampening hopes of a return to international travel. TUI, Trainline, Ryanair easyJet, IAG and SSP all fell.
The World Health Organization on Friday urged fully-vaccinated people to continue to wear masks as the highly contagious Delta variant, which started in India, spreads rapidly throughout the globe, leading many countries to re-impose tighter restrictions.
In the UK Monday, new Health Secretary Sajid Javid was set to update parliament on when Britain can expect to further ease Covid-19 measures. Restrictions are currently due to end on July 19, the date already having been extended due to the spread of the delta variant.
In other company news, Burberry Group fell to the bottom of the Stoxx, down almost 10% as the high-end fashion retailer said chief executive Marco Gobbetti was resigning to join Italian luxury group Salvatore Ferragamo.
Ferragamo shares initially jumped 2.9% on the news.
On the upside, Finnish telecoms giant Nokia topped the index with a rise of more than 6% after a Goldman Sachs upgrade.
