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Omicron worries spur 2% slide in European stocks

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European stocks fell more than 2% on Monday amid a global sell-off in equities, with investors fretting over the spectre of tighter pandemic curbs hitting the global economy as cases of the Omicron COVID-19 variant surge.

Register now for FREE unlimited access to Reuters.com"The rate at which the virus is picking up is increasing fears that governments are going to bring in tighter restrictions which could curtail movement and hamper economic activity," said David Madden, market analyst at CMC Markets UK.

The Netherlands imposed a lockdown on Sunday, while the prospect of tighter COVID-19 measures ahead of the Christmas and New Year holidays looms large over several European countries amid the swift spread of Omicron.Madden added that lower liquidity in the last weeks of December could also be leading to the exacerbated moves.

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, December 17, 2021. REUTERS/Staff Last week, the STOXX 600 rallied after the European Central Bank promised continued economic support and the U.S. Federal Reserve flagged a long-awaited end to its pandemic-era stimulus in March, while delivering an upbeat outlook.

 

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