Europe midday: Shares hold gains as retailers lead the way
European shares were still holding onto gains within view of record highs at midday on Wednesday despite thin trade with little corporate news and economic date to drive sentiment.
The pan-European Stoxx 600 index was up 0.06% at 488.86 points and near the 490 hit in November after weaker sessions in the US and Asia as worries about the Omicron Covid variant’s impact on the global economic recovery persisted. Britain’s FTSE 100 was up 0.8% at 7,433.04, having hit a 22-month high.
Other major regional bourses were all higher, except for Germany’s DAX, which was down 0.12%. Investors were looking later in the day for US mortgage applications, wholesale inventories and pending home sales.
“Although omicron cases in the US and Europe amongst others, continue to surge, it has yet to make its presence felt negatively in economic data,” said OANDA analyst Jeffrey Halley.
“Europe’s restrictions will have a tail impact but, for now, markets are overwhelmingly pricing in the latest variant as a milder incarnation, despite its easier contractibility. With market activity much reduced for the holiday season, investors continue to tentatively price in a global recovery hitting a minor bump, and not a pothole.”
UK retailers were among the leading gainers on hopes of strong sales during the holiday period, with Marks & Spencer, Next, JD Sports Fashion and THG all higher.
The pan-European STOXX 600 added 0.3% to 489.61, a hair's breadth away from a record high of 490.58 hit in mid-November.