Europe open: Shares lower on worries over rising Covid delta cases
European shares opened lower on Monday as investors continued to worry about the spread of Covid-19 cases and rising inflation.
The pan-European Stoxx 600 index was 0.12% lower with France’s CAC 40 down 0.42% and Britain’s FTSE 100 off 0.53%.
"Last week’s events appear to paint a narrative of some concern that the reflation trade is either in trouble, or merely being delayed, due to concern over rising Delta variant cases in Asia, which has prompted a number of countries including Japan, South Korea and Australia to reimpose tighter restrictions," said CMC Markets analyst Michael Hewson.
"We’re also seeing higher case counts in the UK, US and Europe, which could also add to the uncertainty, although in the case of the UK the high levels of vaccination are keeping hospitalisations and deaths low for now. Whether that stays the case remains to be seen, but the lower vaccination rate in Europe could prove problematic in the days ahead, which mean help explain this morning’s weaker European open."
In equity news shares in tabloid publisher Daily Mail and General Trust jumped after its largest shareholder, the Rothermere family, said it might take the UK newspaper group private in a £810m deal, if the sales of its insurance risk unit and Cazoo business go through.
Tate & Lyle shares rose after the company said it had agreed to sell a controlling stake in its primary products business in North America and Latin America to private equity outfit KPS Capital Partners for $1.3bn.
Shares in UK insurer Admiral gained 3.4% after the company raise its first-half profits forecast.
French IT consulting group Atos slumped 12% after it cut full-year earnings forecast.
Miners were also under pressure as metals prices fell, with Anglo American, Antofagasta and Glencore trading lower.