Omicron’s concern is that Reuters is pushing for a 2% drop in European shares

Author: Anisha Sircar

(Reuters) – European equities fell by more than 2% on Monday as global stock sales saw investors worried that the ghosts of more severe pandemics were hitting the global economy in the wake of the rise of Omicron COVID-19.

Pan-European Europe fell 2.2% to a two-week low.

Travel, oil and car stocks fell by more than 3%, with all major sub-sectors in the red.

“The speed at which the virus is spreading is increasing fears that governments will impose tougher cuts that could slow down movement and hinder economic activity,” said David Madden, market analyst at CMC Markets UK.

The Netherlands imposed a blockade on Sunday, and before the Christmas and New Year holidays there is a strong chance of tightening COVID-19 measures in several European countries amid the rapid spread of Omicron.

Madden added that even lower liquidity in the last weeks of December could lead to more serious moves.

Last week, the STOXX 600 rose after the European Central Bank ordered a halt to economic support, and the US Federal Reserve announced the end of the pandemic-era promotion expected in March, while providing good forecasts.

Meanwhile, U.S. senator Joe Manchin, who is a key Democrat in the hopes of approving a $ 1.75 trillion internal investment bill, fell 1.8 percent in the future following US stock benchmark after saying he would not approve the package on Sunday.

Goldman Sachs (NYSE 🙂 reduced its real U.S. GDP forecast for the first quarter of 2022 to 2% from the previous 3%, and slightly lowered its forecast for the second and third quarters.

Argenx shares jumped 8.2% to the benchmark after the Belgian team reached a regulatory milestone for its receiver-blocker.

The worst performance, however, was Novo Nordisk (NYSE :), which fell 10.8% after a Danish doctor said he could not meet the demand for a new obesity drug due to US supply problems.

BNP Paribas (OTC 🙂 fell 0.6% after the French lender agreed to sell its US Bank of the West Bank to the Canadian BMO Financial Group for about $ 16.3 billion.

Sweden’s Billerud Korsnas fell 6.9% after the US-based paper-based producer Verso (NYSE 🙂 said it would buy it for about $ 825 million because it wants to expand its pulp and paper manufacturer to North America.