Europe open: Omicron fears hit shares as Daimler Truck makes debut

European shares opened lower at the start of the week’s final session following weak US and Asian markets overnight as investors fretted about the spread of the Omicron coronavirus variant.

The pan-European Stoxx 600 index was down 0.39% in early deals with major regional bourses all lower. Britain’s FTSE 100 was down after official data revealed the UK economy barely grew in October as the post-pandemic recovery stalled.

GDP grew just 0.1%, coming in weaker than expectations for 0.4% growth and leaving the economy 0.5% below pre-pandemic February 2020 levels.

The small growth in GDP was driven mostly by a rise in face-to-face GP appointments and solid demand for second-hand cars. The services sector expanded by 0.4%, taking it back to pre-pandemic levels for the first time. However, the manufacturing sector was flat and construction fell 1.8% amid a shortage of materials.

Investors were also eyeing a US inflation reading due later in the day.

In equity news, shares in business automobile maker Daimler Truck opened at €28 after its market debut on the Frankfurt Inventory Trade as part of its spinoff from Daimler.

Shareholders in Daimler acquired one share in Daimler Truck for each two Daimler shares they owned. Daimler shares plunged 17%.

Food delivery companies Deliveroo and Just Eat Takeaway both fell on worries that a European Commission ruling on gig economy drivers would hit the bottom line.

Shares in Bayer gained after winning a second straight verdict in a Roundup cancer case.

Tobacco group Swedish Match jumped after the Wall Street Journal reported that US Democrats dropped a proposed vaping tax that would have taxed e-cigarettes in line with regular ones.