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Journey share is dragging Europe down attributable to virus worries

© Reuters. The graphic of the German share index DAX is pictured on the stock exchange in Frankfurt, Germany, 16 July 2021. REUTERS / employees

From Sruthi Shankar

(Reuters) – European stocks fell and travel stocks hit their February lows on Monday amid fears the fast-spreading delta variant could stifle travel demand and slow the ongoing global economic recovery.

The pan-European index fell 1.2% to its lowest level in almost two weeks.

The German lost 1.1% and 40 lost 1.3%. The UK was down 1.2% as rising virus cases overshadowed optimism about Britain's reopening.

"The surge in the number of delta variants could spread outside of Asia, and the risk now seems to be that the easing of restrictions in many regions will be delayed, causing growth momentum to stall," said Peel Hunt analyst Ian Williams in a morning note.

Europe's travel and leisure index fell 2.9% to its lowest level since mid-February. The UK government said on Friday it would cancel a planned relaxation of COVID-19 quarantine rules for travelers from France.

The UK-listed shares of cruise operator Carnival (NYSE 🙂 Plc, airline easyJet (LON 🙂 and British Airways owner IAG (LON 🙂 fell between 4% and 6.7%.

In the UK, cases rose to 48,161 on Sunday, and in France, a minister said the reintroduction of curfews could not be ruled out if infections continued to rise.

Oil companies like BP (NYSE 🙂 and Royal Dutch Shell (LON 🙂 fell more than 1.5% on falling crude oil prices after OPEC + ministers agreed to increase supply from August.

As government bond yields fell, other cyclical sectors such as mining, automobiles and parts, and banks fell as rising virus cases increased the prospect of a slower recovery. (GVD / EUR)

French media giant Vivendi (OTC 🙂 lost 0.8% after billionaire Bill Ackman decided to buy up to 10% of Vivendi's Universal Music Group through its main hedge fund, rather than through a dedicated acquisition company.

Italian telecommunications group Telecom Italy (MI 🙂 fell 2.2% after core organic profit was forecast for stable to low single digit growth this year versus a previous forecast.

UK video game company Sumo Group rose 42.2% after Chinese tech giant Tencent Holdings (OTC 🙂 agreed to buy the company for a value of £ 919 million ($ 1.27 billion).

Graphic: British stocks are so far behind European peers in 2021 – https://fingfx.thomsonreuters.com/gfx/mkt/dgkplrrbmpb/Pasted%20image%201626675506966.png

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