Europe open: Shares slump on US Omicron case; Vifor soars
European shares slumped at the opening 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.
"A tentatively positive showing from Asian markets overnight has not fed through to the UK in opening trade, with the indices currently switching between risk on and risk off on a daily basis," said Interactive Investor head of markets Richard Hunter.
"Investors are caught between reflecting on what has been a positive response to the pandemic, which has fed through to strongly improved corporate earnings, set against the implications of the latest (and indeed future) variants on delaying a full return to economic normality."
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 a 15% rise on a report that Australian Biotech giant CSL was in talks to buy the Swiss-based company in a AUD$10bn-plus deal.