Europe open: Shares fall as China Covid surge weighs on investors

European shares opened lower on Thursday, with the surge in Chinese Covid cases at the forefront for investors.

The pan-regional Stoxx 600 was down 0.48% at 0847 with all major bourses in the red. The US joined the growing list of nations requiring negative Covid tests for travellers arriving from China.

Japan, Italy and South Korea also imposed the measure. The UK, which was criticised for its slow response to the pandemic’s outbreak in 2020, said it had no plans to implement any restrictions.

Sentiment was also hit by Russia pounding Ukraine with a massive missile strike on several cities, including the capital Kyiv.

Luxury firms with an exposure to China, such as LVMH and Richemont were lower. Energy majors BP and Shell fell after a decline in crude oil prices, driven by fears of an economic slowdown in the world's second-largest economy.

Reporting by Frank Prenesti for Sharecast.com