Europe midday: US mood music dampens sentiment; Vifor in demand
European shares fell sharply on Thursday as fears around the Omicron coronavirus variant fuelled further volatility.
The regional benchmark Stoxx 600 index was down 1.2% in early deals after a strong rise on Wednesday. US shares fell sharply at the close after the country reported its first case of Omicron and Federal Reserve Chair Jerome Powell said inflation may not fall in the second half of next year.
"The reversal in US markets last night has taken Europe down too, and despite some hopes of a bounce just after the open the overall tone remains gloomy," said Chris Beauchamp, chief market analyst at IG.
"The bounce of Wednesday’s European session is now a distant memory, as the discovery of US cases of the new variant show that the spread of this new enemy has already begun. Now the issue becomes one of mitigation, and here the policy responses may yet provoke a further short-term hit to equities. "
In equity news, computer chip makers fell on a report that Apple had told parts suppliers demand for its iPhone 13 had slowed.
Shares in Infineon Technologies, ASML, AMS and BE Semiconductor were all lower as a result.
On the positive side, Vifor Pharma topped the Stoxx with an 18.45% rise on a report that Australian Biotech giant CSL was in talks to buy the Swiss-based company in a AUD$10bn-plus deal.