Europe: Stocks open lower on Omicron crackdown

[LONDON] European equities dived in opening deals on Monday, mirroring heavy losses elsewhere as governments raced to curb the spread of the Omicron coronavirus variant.

In initial trade, London's benchmark FTSE 100 index sank 1.9 per cent to 7,133.15 points compared with the closing level on Friday.

In the eurozone, the Paris CAC 40 index lost 2.1 per cent to 6,782.16 points and Frankfurt's DAX shed 2.4 per cent to 15,154.44.

Economies are taking a hit as the fast-spreading Omicron Covid-19 strain forces governments to reimpose containment measures and consumers stay at home.

"Governments around the world are raising restrictions in order to curb the spread of the Omicron variant," said AvaTrade analyst Naeem Aslam.

"Until the macroeconomic landscape stabilises, investors are acting cautiously and withdrawing... from risky investments that are more positively linked to economic growth."

Asian stocks and oil prices also sank Monday on fears about a fresh global surge in coronavirus infections and as the future of US President Joe Biden's massive social spending Bill was thrown into doubt after it lost the crucial vote of a moderate Democrat.

AFP