Europe midday: Stocks slip amid rising Covid-19 cases, lower oil prices
European stocks were still moving lower come midday as rising Covid-19 case numbers across the Continent continued to drag on risk appetite.
Against that backdrop, the US president and the German Chancellor were due to meet in Washington with America's ongoing travel curbs on the Schengen area expected to be high on the agenda.
"Broadly speaking, sentiment is downbeat. The rising number of cases is reminding the markets that Covid remains a risk, despite successful vaccination programmes in some countries," said Sophie Griffiths, market analyst at Oanda.
"As such, Covid fears are driving a rotation out of cyclicals - stocks that are more closely linked to the health of the economy, such as banks and carmakers - and travel stocks as more flying restrictions are imposed."
The pan-European Stoxx 600 index was down 0.62% to 457.68, alongside a 0.90% drop for the German Dax to 15,646.88, while the FTSE Mibtel was off by 0.95% at 24,954.75.
Front month Brent crude oil futures were retreating 1.51% alongside to $73.63 a barrel on the ICE.
Investors were also digesting comments from US Federal Reserve Chairman, Jerome Powell, the day before, who sought to quell investors’ fears about a rollback of central bank stimulus, even as inflation rose. Powell said the economy was “a ways off” from where it needed to be for a change in policy.
Siemens Energy dropped 12% after it scrapped its margin target as wind power division Siemens Gamesa was hit by higher-than-expected raw material and product ramp-up costs.
Shares in Siemens Gamesa fell 14%, while shares in wind turbine maker Vestas were down 4%.
Oil majors Royal Dutch Shell and BP were falling roughly 3%, as crude prices slipped on expectations of more supplies after top OPEC producer Saudi and the United Arab Emirates narrowed their differences on Wednesday night.
Shares in cybersecurity firm Avast topped the Stoxx with a 15% surge as the company confirmed it was in advanced merger talks with US peer NortonLifeLock.
Credit-checking firm Experian rose 4% after lifting full-year guidance as it reported a jump in first-quarter revenues, with all regions and segments delivering growth.
Just Eat Takeaway.com was weaker even after it said losses had peaked and it expected to move back into profit after orders increased by more than half in the first six months of 2021.