Europe: Inflation woes keep shares below record highs, travel stocks slump

[BENGALURU] European shares held just below record highs on Monday as investors remained worried that a jump in inflation could spark a sudden tapering of ultra-loose global monetary policy, while travel stocks sank on a spike in Covid-19 cases across Asia.

The pan-European Stoxx 600 was down 0.1 per cent by 7.09am GMT, with travel-related stocks TUI, Ryanair Holdings and IAG among the biggest decliners.

The benchmark European Stoxx 600 tumbled from record highs just over a week ago as a surprisingly hawkish stance from the US Federal Reserve roiled global equity markets. Although the index recovered to post gains of 1.2 per cent last week, it has so far been unable to cross its all-time closing high hit on June 16.

Banks, industrials and mining stocks were down between 0.3 per cent and 0.5 per cent after leading gains last week.

In company news, Burberry Group shares tumbled 5.1 per cent to the bottom of the Stoxx 600 as it said chief executive officer (CEO) Marco Gobbetti was resigning.

Italian luxury group Salvatore Ferragamo, meanwhile, jumped 2.9 per cent after saying it had named Mr Gobbetti as its new CEO.

REUTERS