Travel stocks push European shares lower on Omicron worries



(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

* Travel, energy stocks lead declines

* Markets eye crucial c.bank meetings this week

* Vifor Pharma surges on CSL buyout talks (Updates to close)

By Anisha Sircar and Shashank Nayar

Dec 13 (Reuters) - European shares ended lower on Monday, led by travel and energy stocks over rising Omicron variant risks, while a wave of central bank policy decisions this week kept investor sentiment subdued.

The pan-European benchmark STOXX 600 .STOXX erased early session gains to end 0.4% lower, marking its fourth consecutive day in the red.

Travel stocks .SXTP dropped 2.6% on risks of tougher movement restrictions after the United Kingdom reported its first death from the Omicron coronavirus variant.

London's FTSE 100 .FTSE and FTSE 250 .FTMC , dropped 0.8% and 1.2% respectively, to mark their worst session in two weeks. UK travel stocks .FTNMX405010 dropped 3.5%.

Oil prices weakened on worries the new variant and related curbs would hit demand. Europe's energy sector lost .SXEP with Royal Dutch RDsa.L and BP BP.L down between 2.2% and 2.7%.

"Creeping headlines about the Omicron variant are weighing on traders' minds," said David Madden, market analyst at Equiti Capital.

Investor focus is on monetary policy decisions expected to be taken by the European Central Bank (ECB), the U.S. Federal Reserve, the Bank of England and the Bank of Japan this week.

The ECB is set to halve the amount of assets it buys each month from April, according to a Reuters poll, which judged that a reprieve from high euro zone inflation by late 2022 means a rate hike is years away.

"It's going to be a relatively dovish week due to Omicron," said Willem Sels, global chief investment officer at HSBC, adding that the ECB is likely to keep its pandemic emergency purchase programme (PEPP) in place due to the emergence of the new variant.

Concerns about the fast-spreading Omicron variant and surging inflation have spurred bouts of selling in the markets recently, keeping the STOXX 600 over 3% below its all-time high hit in mid-November.

On the upside, Vifor Pharma VIFN.S surged 18.5% after the Swiss drugmaker and Australia's CSL CSL.AX both confirmed they were talking about a potential merger.

Norwegian aluminium maker Norsk Hydro NHY.OL rose 2.7% after raising its cost-cutting targets and announcing plans to pay a bigger dividend for 2021 following a jump in earnings.

Daimler Truck DTGGE.DE rallied almost 11%, extending gains after a strong debut in Friday, with Citigroup starting coverage with a "buy" rating.
Reporting by Anisha Sircar in Bengaluru; Editing by Sherry Jacob-Phillips, Maju Samuel and Dan Grebler

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.