European shares rebound from Omicron-fuelled selloff

BY Reuters | ECONOMIC | 11/29/21 03:39 AM EST

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Nov 29 (Reuters) - European shares rebounded on Monday from their worst selloff in more than a year, as investors awaited clues on whether the Omicron variant of coronavirus would hamper economic recoveries and monetary tightening plans by central banks.

The pan-European STOXX 600 advanced 1% as of 0818 GMT, after a 3.7% slump on Friday, triggered by concerns around the newly discovered variant.

A South African doctor who was one of the first to suspect a different coronavirus strain among patients said on Sunday that symptoms of the Omicron variant were so far mild and could be treated at home.

All sectors were trading higher, with travel stocks leading gains as Airbus, Lufthansa and Ryanair rose between 0.7% and 1.7% after slumping the most on Friday on fears of fresh travel restrictions.

Oil stocks also lifted the benchmark, adding 1.8% as crude prices recovered on speculation that OPEC+ may pause an output increase in response to the spread of Omicron.

Meanwhile, European Central Bank board member Isabel Schnabel said inflation peaked in November and it would be premature to tighten policy.

BT Group jumped 7.7% on reports that Indian oil-to-telecom conglomerate Reliance was considering an offer for the UK telecom firm.

Car parts group Faurecia dropped 5.6% after trimming its full-year guidance, citing a drop in European automotive production. (Reporting by Anisha Sircar in Bengaluru; Editing by Arun Koyyur)

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