European markets rebound amid tumultuous week; Stoxx 600 up 1.3%
European stocks were higher on Wednesday after struggling to regain ground amid fears around the new omicron Covid variant.
Lynk
LONDON — European stocks were higher on Wednesday after struggling to regain ground amid fears around the new omicron Covid variant.
The pan-European Stoxx 600 added 1.3% by mid-afternoon, with autos and travel and leisure stocks jumping 3.2% to lead gains as almost all sectors and major bourses traded in positive territory.
The positive start to December comes after global markets were rattled late last week and into Tuesday by concerns surrounding the new omicron Covid-19 variant, amid fears that it could evade vaccines.
Major markets across Asia-Pacific bounced back Wednesday and U.S. stock futures were higher in overnight trading following a sell-off on Wall Street on Tuesday, due to both fears about the new variant and the Federal Reserve mulling a quicker-than-planned taper.
Stock picks and investing trends from CNBC Pro:
U.S. stocks hit their session lows when Federal Reserve Chair Jerome Powell said the central bank will discuss speeding up the bond-buying taper at its December meeting.
Despite the potential disruption of omicron, the Fed chief said he thinks reducing the pace of monthly bond buys can move quicker than the $15 billion-a-month schedule announced earlier this month.
Hopes are pinned on vaccine makers' ability to develop effective shots against the strain but there are still many unknowns about the new variant. The World Health Organization has said it will take several weeks to gain a full picture of how omicron's mutations affect its response to existing vaccines.
Markets nosedived Tuesday morning following comments from Moderna CEO Stephane Bancel, who told the Financial Times that he expects vaccines to be less effective against the new strain.
Bancel also told CNBC on Monday that it could take months to develop and ship a vaccine that specifically targets the omicron variant.
On the data front, November's final manufacturing purchasing manager's index (PMI) reading for the euro zone came in at 58.4, a slight improvement on October's 58.3 but short of an initial 58.6 flash estimate.
In terms of individual share price action, Hungary's Wizz Air jumped more than 8% to lead the broad advance for travel stocks, with Lufthansa adding 6.4%.
At the bottom of the European blue chip index, London-based fintech firm Wise fell 6% after Credit Suisse cut its target price for the stock a day after the company's earnings report.
Enjoyed this article?
For exclusive stock picks, investment ideas and CNBC global livestream
Sign up for CNBC Pro
Start your free trial now
— CNBC's Maggie Fitzgerald contributed to this market report.
